Canadian Solar Infrastructure Fund, Inc.
Killarney Provincial Park, Canada

1-25-1 Nishi-Shinjuku, Shinjuku-ku,
Tokyo 163-0633 Japan
https://www.canadiansolarinfra.com/

➢ To Our Investors

Executive Director
Canadian Solar Infrastructure Fund, Inc.
CEO and Representative Director
Canadian Solar Asset Management K.K.

Tetsuya Nakamura

On behalf of the Canadian Solar Infrastructure
Fund, Inc. (hereinafter referred to as “CSIF”), I
would like to express sincere appreciation to all
unitholders for their continued patronage andsupport.
CSIF listed its investment units on the
Infrastructure Fund Market of the Tokyo Stock
Exchange on October 30, 2017 and commenced
substantive investment operations by acquiring
photovoltaic power generation facilities with a
total panel output of 72.7MW and a totalacquisition price of ¥30,438 million, the largest in
the Infrastructure Fund Market. Subsequently,
CSIF acquired additional assets for five
photovoltaic power plants from its sponsor in
2018, using loans and capital increase throughpublic stock offering. Due to the support ofgenerous unitholders, CSIF was able to close theaccounts in the fiscal period ended June 30,
2019 (the 4th period from January 1, 2019 toJune 30, 2019).
In the 4th period, CSIF recorded operating
revenues of ¥2,185 million, operating income of¥817 million and ordinary income of ¥711 million.
In the fiscal period under review, as a result ofincorporating assets for two photovoltaic power
plants into the CSIF portfolio using cash on handand loans, CSIF assets consists of 20 facilities
and the total panel output increased to 108.9MW.
Kyushu Electric Power Co. Inc. (hereinafterreferred to as “Kyushu Electric Power”)
commenced the output control program in
October 2018, and CSIF’s photovoltaic power

DPU for the 4th FP

JPY 3,650
Forecasted DPU for the 5th FP Forecasted DPU for the 6th FP

JPY 3,650

JPY 3,650

Forecasted DPU for the 7th FP

JPY 3,650

plants in Kyushu in its portfolio were also
affected. However, because of the cap effect due
to the minimum guaranteed rent and good
weather in May and June 2019, the actual
performance of the portfolio exceeded the
expected energy output throughout the period. In
addition, as a result of posting insurance fee
income of ¥26 million as non-operating income,net income exceeded the initial forecast of ¥572
million by ¥138 million. Consequently, CSIF
increased distributions per unit ¥50 from theinitial forecast of ¥3,600 (profit distributions of¥2,478 and distributions in excess of earnings of¥1,122), to ¥3,650 (profit distributions of ¥3,073
and distributions in excess of earnings of ¥577).
Expected distributions per unit for the 5th
period (July 1, 2019 to December 31, 2019), the
6th period (January 1, 2020 to June 30, 2020)
and the 7th period (July 1, 2020 to December 31,2020) are ¥3,650, ¥3,650 and ¥3,650,
respectively.
CSIF is determined to maximize unitholder
value by making efforts to achieve efficientinvestment, taking advantage of the vertical
integration model of the Canadian Solar Groupand external growth through the acquisition offacilities mainly from the sponsor pipeline toprovide stable distribution.
In pursuit of these initiatives, we expect thecontinued understanding and support of allunitholders.

Contents
01 To Our Investors
02 Canadian Solar Group
03 Unique Aspect of the Fund
04 Highlight of the 4th FP
05 Management Interview
99 Portfolio
99 Portfolio Overview
99 Sponsor Pipeline
99 Effort in ESG
99 Financial Summary
99 Information for Unitholders
99 I. Asset Management Report
99 II. Balance Sheet
99 III. Statement of Income
99 IV. Statement of Changes in Unitholders’ Equity
99 V. Notes
99 VI. Statement of Cash Distribution
99 VII. Audit Report (in Japanese)
99 VIII. Statement of Cash Flow➢ Canadian Solar Group➢ Unique Aspects of the FundHistory and Accomplishment of the Group
2001

Founded in Ontario, Canada, as a solar
panel manufacturer

2006

Listed on NASDAQ (CSIQ)
11,000 employees globally as of today

2009Entered into the Japan market for salesof PV modules (by Canadian Solar
Japan K.K.)

2013

Started development business of solar
power plant in Japan (by Canadian Solar
Project K.K.)

2016

Established Canadian Solar AssetManagement K.K., the asset
management of the fund, as 100%
subsidiary of Canadian Solar Project
K.K.

2017

Listed Canadian Solar Infrastructure
Fund, Inc. on Tokyo Stock Exchange.

Advantageous Operation Based on the Vertically-Integrated Model of the Group
Developed
projects

Accumulated
shipment of PV
module4.7 +Prominent knowledge acquired by the Group as the total solution provider of solar power
generation is fully utilized for the operation of CSIF. The uniqueness of the vertically integrated
model of the group is shown as below.

GW
in total globally

36GW+

Operating

795.8MW

Systems sold in2018

solar power
plants globally

750MW
Installed to120,000

houses in Japanin total

13

Total
GW
projects underconstruction ordevelopment

Canadian Solar Group’s Global Operations

CanadaU.S.
3 Mexico
Brazil4
5 Germany
6 Spain7 Turkey
8 South Africa
9 UAE
10 India
11 Singapore
12 Japan
13 Korea
14 Australia

2

1

2

CSIF has successfully achieved to obtain debt financing from Shinsei Bank, Ltd. (as the mainbank), 3 mega banks and other financial institutions. This is because the credibility andoperational stability of CSIF are healthy enough for them to provide with the debt finances and webelieve additional finance for future acquisitions of new assets can be obtained in stable manner.

1

CanadaBrazil３ China
４ Thailand
５ Vietnam
６ Indonesia
1
2

1
2

Argentina
TaiwanAs of June 30, 2019
●Base of Sales◆Base of Manufacturing■Base of Development

Source: Compiled by the Asset Manager based on“Investor Presentation as of May 30, 2019”
by Canadian Solar Inc.

Canada (2009)

Stable Bank Formation

U.S. (2010)(Note)There is no assurance that we can acquire the solar energy projects showed in the above
pictures in the future as of this writing.

Global Offering
CSIF issues about the half of new units in the overseas market through the public offering
process. By having foreign unitholders, Canadian Solar Asset Management K.K., the asset
manager of CSIF, operates the fund in a way such foreign investors can support.in line with theglobal standard of infrastructure fund management. Also, the base of the candidate investors canbe broaden so that the liquidity of the units is heighten and future public offerings are conductedstably.

➢

Financial Highlights➢

Distribution Per Unit for the 4th FP

JPY

3,650

Operational Revenue for the 4th FP

JPY

Operating Income for the 4th FP

JPYManagement Interview

817mln2,185mln

Net Income for the 4th FP

JPY

710mlnForecasted DPU for
the 5th FP

Forecasted DPU forthe 6th FP

Forecasted DPU for
the 7th FP

JPY 3,650

JPY 3,650

JPY 3,650

Historical Distribution and Forecast
Executive Director
Canadian Solar Infrastructure Fund, Inc.
CEO and Representative Director
Canadian Solar Asset Management K.K.

Tetsuya Nakamura

Q1: Termination of the feed-in tariff scheme
for renewable energy (FIT scheme) has beenreported. Will it impact CSIF? In addition, whatis the bidding system that was recently
reported by the media?
The fundamental revision of the Act on Special
Measures Concerning Procurement of Electricity
from Renewable Energy Sources by Electricity
Utilities, which is scheduled to be completed by
the end of fiscal 2020, is being discussed in the
Ministry of Economy, Trade and Industry (METI),
but it is not yet determined how the FIT scheme
should function after the fundamental revision,
including its abolition and continuation.
All assets in the portfolio that CSIF has
acquired up to now have already begun sellingelectricity to electric power companies under thecurrent FIT scheme, and their electricity sales
prices are fixed for 20 years after thecommencement of electricity sales. Even after
such a fundamental revision, it will not impact
CISF’s power generation facilities that havealready commenced electricity sales and whose
electricity sales prices to electric powercompanies have already been determined.

Therefore, it will not impact the current portfolioof CSIF and the pipeline projects of the sponsor
that have already entered into the phase ofoperation start by the deadline in accordancewith the “response to not-yet-operated projects”
announced by the METI in December 2018, in
principle.
Regarding the frequently reported bidding
system, it will not differ from the past in the sensethat the bidding system will be maintained under
the current FIT scheme until fiscal 2020 andunder this scheme, electricity sales prices are
determined by bidding, while the electricity sales
prices of successful bids will be fixed for 20
years, in the same manner as past projects.
Therefore, stable income can be expected.
However, the bidding system after thefundamental revision above is not yet
determined. CSIF’s sponsor has a track record ofsuccessfully placing a bid on multiple projects
that have already begun operating and aims todevelop power plants that will be able to ensure
certain profitability even after the electricity sales
price declines due to the introduction of a new
bidding system. Therefore, CSIF assumes that it
will acquire such power plants.

Q2: In the current portfolio, assets appear to
be dominated by those in Kyushu. What is the
future outlook for the output curtailment
implemented in Kyushu in the fiscal period
under review?
In the current portfolio, assets located in
Kyushu make up 61.3% (based on theacquisition price). Given that it is possible to gaina stable amount of solar radiation in this region
and it was relatively easy to procure sites
compared with other regions in Japan, there
were many projects in this region among thedevelopment projects of the sponsor. In the
future, CSIF intends to acquire assets to promote
regional diversification in its portfolio. As stated in
the sponsor pipeline described later, because thedevelopment projects of the sponsor are locatedin many parts of the country, it is believed that
CSIF will be able to promote regional
diversification along with the growth of theportfolio in the future.
In terms of the output curtailment implemented
in the jurisdictional region of Kyushu ElectricPower, Kyushu Electric Power currently uses
four nuclear power plants, which have been
conducting a periodic inspection since May 2019.
In addition, the Nuclear Regulation Authority
decided that if Kyushu Electric Power is unable
to complete a terrorism-resistance facility, which
nuclear power plants are obligated to set up, by
the regulatory deadline, the Authority will orderthese nuclear power plants to halt operation.
Therefore, if the construction of the terrorismresistance facility misses the deadline, thenuclear power plants in the jurisdictional regionof Kyushu Electric Power could be ordered tohalt operation, in principle. Taking these factors
into consideration, the electricity oversupply inthe jurisdictional region of Kyushu Electric Powerwill not become more serious than the current
situation in the immediate future after summer
2019 and the output curtailment will not be
conducted more rigorously than in the fiscal
period under review.

Q3: Recently, natural disasters such as
earthquakes and intense rainfall haveoccurred frequently. It is understood that none
have materially impacted the portfolio thus far,but there must be minor breakdowns anddamages. What breakdowns and damages
occurred in the assets of the portfolio,

including those caused by natural disasters?
Here are some examples of breakdowns anddamages that have occurred thus far. There wasthe collapse of a slope and an artificial slope on
the site of a power generation facility due tointense rainfall and the clogging of a drainage
channel and drainage basin of a regulating
reservoir by dirt on the site of a power generation
facility. Because damages caused by rainfall, inparticular, are seen here and there, CSIF hasestablished a system that enables the discoveryof damages and the implementation of quick
restorative measures by focusing on theunderstanding of the situation at each power
generation facility during rainfall.

Q4: It is understood that distributions include
the refund portion of the principal ofinvestment units (distributions in excess ofearnings). What is the future outlook for
distributions and the perspective on
distributions in excess of earnings?
First, with regard to the future outlook for
distributions, CSIF works to maintain the level of
distributions made in the 4th period (\3,650) for
the time being. Because CSIF believes that it isimportant to provide unitholders with a stablelevel of distributions to enable them to hold theirinvestment units in the long term, it tries tostabilize distributions every fiscal period byutilizing distributions in excess of earnings to areasonable extent.
Distributions in excess of earnings refers to
the amount to distribute in excess of distributions
made by using net income as the source(distributions from earnings). (Therefore, theformula would be: Distributions in excess ofearnings [¥577 in the 4th period, the same
applies below] = Total distributions [ ¥3,650] Profit distribution [¥3,073].) Because distributions
in excess of earnings are not distributions fundedby earnings, they are distributions in the form of
the refund of investment capital (the principal ofinvestment units) of unitholders. Because thedepreciation of power generation facilities, which
is an expense item in the calculation of net
income for accounting purposes, is an expense
unaccompanied by the outflow of funds in reality,
funds equivalent to this expense will remain in
CSIF’s hand. Therefore, distributions will bemade by using these funds as the source.

Distributions in excess of earnings are made to
the extent to which they will not negatively impact
cash flows, based on the characteristics of an
infrastructure fund that has a higher ratio ofdeprecation than listed J-REITs.
In the medium to long term, CSIF will plan touse profit as the major source of distributions,because it is believed that CSIF will be able toimprove the level of profit per investment unit byusing those funds equivalent to depreciation,
which are reserved in hand without being
distributed as distributions in excess of earnings
for the acquisition of new power generation
facilities, combined with borrowings and capitalincrease through public stock offering.

Q5: What does CSIF think of the current
challenges of the listed infrastructure funds?
Currently, six infrastructure funds are listed,
but they may be insufficient for investors from thestandpoint of the overall asset size of theirportfolios and the number of funds. It isnecessary for infrastructure funds to be newly
listed to appear in the market and for individual
funds to grow steadily. In addition, because all
assets in the portfolios of the six funds arephotovoltaic power generation facilities, it isnecessary to create an environment for
infrastructure funds whose portfolio assets areother renewable energy facilities or ports andharbors and water supply and seweragesystems, for example, to be listed in the market,
as seen overseas.
As for the tax system, the listed infrastructure
funds have difficulty forecasting a future outlook
given the following factors: 1) They are treateddifferently from listed J-REITs so that theDistribution in Excess of Earnings (for Q5)

inclusion of distributions in deductible expenses
is admitted for only 20 years, starting from thecommencement of leasing of the portfolio assets
acquired at the time of listing, and 2) they areunable to grasp how the electricity sales price will
be after the period of the FIT scheme has
expired. CSIF will respond appropriately to future
developments in these environments surrounding
the listed infrastructure funds.

Q6: How does CSIF operate its photovoltaic
power plants after the termination of the FIT
period?
CSIF assumes that it will continue the power
generation business for at least about five years
at each photovoltaic power plant, even after thetermination of the FIT period. If it discontinues
the power generation business by removing thefacilities after the termination of the FIT period, it
will not contribute to the dissemination ofrenewable energy, which is the primary aim of
the Japanese government. While the electricity
sales price is expected to decline after thetermination of the FIT period, CSIF thinks that
more value will be found from electricity
generated by photovoltaic power plants if theelectricity sales price declines, given that anincreasing number of companies are joining the
RE100 project, which is an initiative that aims toprocure the electricity needed for business
operation with 100% renewable energy. CSIF will
advance preparations in cooperation with power
generation companies to be able to adequately
capture such needs and continue the power
generation business even after the termination of
the FIT period.

➢Portfolio

List of Power Plant Assets

Portfolio Highlight

Acquisition
price (yenmillions)

Price (yenmillions)

Investme
nt ratio(％)

Panel output(kW)

Shibushi-shi,
Kagoshima

540

607

1.21

1,224.00

CS Isa-shi PP

Isa-shi, Kagoshima

372

408

0.82

931.77

S-03

CS Kasama-shi PP

Kasama-shi,
Ibaraki

907

1,082

2.16

2,127.84

S-04

CS Isa-shi Dai-ni PP Isa-shi, Kagoshima

778

847

1.69

2,013.99

S-05

CS Yusui-cho PP

670

730

1.46

1,749.30

S-06

CS Isa-shi Dai-san PPIsa-shi, Kagoshima

949

1,033

2.06

2,225.08

S-07

CS Kasama-shi Dai-niKasama-shi,
PP
Ibaraki

850

923

1.85

2,103.75

S-08

CS Hiji-machi PP

1,029

1,111

2.22

2,574.99

S-09

CS Ashikita-machi PP Ashikita-gun,
Kumamoto

989

1,081

2.16

2,347.80

S-10

CS Minamishimabara-Shimabara-shi,shi PP (East & West) Nagasaki

1,733

1,988

3.97

3,928.86

S-11

CS Minano-machi PP Chichibu-gun,
Saitama

1,018

1,173

2.34

2,448.60

S-12

CS Kannami-cho PP Tagata-gun,Shizuoka

514

593

1.19

1,336.32

S-13

CS Mashiki-machi PP Kamimashiki-gun,
Kumamoto

20,084

23,46546.91

47,692.62

S-14

CS Koriyama-shi PP Koriyama-shi,
Fukushima

246

272

0.54

636.00S-15

CS Tsuyama-shi PP Tsuyama-shi,
Okayama

746

817

1.63

1,963.00

S-16

CS Ena-shi PP

Ena-shi, Gifu

757

868

1.74

2,124.20

S-17

CS Daisen-cho PP(A)(B)

Saihaku-gun,Tottori

10,447

11,31022.61

27,302.40

S-18

CS Takayama-shi PP Takayama-shi, Gifu

326

359

0.72

962.28

S-19

CS Misato-machi PP Kodama-gun,
Saitama

470

488

0.98

1,082.00

S-20

CS Marumori-machi Igu-gun, Miyagi
PP

850

866

1.73

2,194.50

44,28150,026100.00108,969.30# of Projects

Total Acquisition Price

Panel Output of AUM

No.

Project name

20 PV Facilities

JPY 44.28bln

108.9 MWS-01

CS Shibushi-shi PP

S-02(Note) “Total Acquisition Price” is total of the purchase prices based on the sales and purchase agreement for eachproject.

Total Energy Output for the Period
4th FP Actual Energy Output / 4th FP Projected Energy Output =103.6%FIT Price Range and Regional Allocation

AUM
Ratio by
FIT Price

JPY 40/kWh
JPY 36/kWh
JPY 32/kWh

37.9%
54.0%
8.1%

Regional
Allocation
Ratio

KyushuKanto
Tokai
Hokkaido/Tohoku
Chugoku/Shikoku

61.3%
7.3%
3.6%
2.5%
25.3%

Historical Total Solar Panel Output
108.9MW

Total

Location

Aira-gun,Kagoshima

Hayami-gun, Oita

➢S-07 / CS Kasama-shi Dai-ni PP

Portfolio Overview

S-19 / CS Misato-machi PP*as of the end of the 4th FP

NEW

S-20 / CS Marumori-machi PP

NEW

S-13 / Mashiki-machi PP

Panel Output /2,103.75kW
FIT Price /JPY 40/kWh
End of FIT Period /September 23, 2035

S-08 / CS Hiji-machi PP

Panel Output /47,692.62kW
FIT Price /JPY 36/kWh
End of FIT Period /June 1, 2037

S-14 / Koriyama-shi PP

Panel Output /2,574.99kW
FIT Price /JPY 36/kWh
End of FIT Period /October 12, 2035

S-09 / CS Ashikita-machi PP
Panel Output / 1,082.00kW
FIT Price / JPY 32/kWh
End of FIT Period / March 26, 2037

Panel Output / 2,194.50kW
FIT Price / JPY 36/kWh
End of FIT Period / July 12, 2038

S-01 / CS Shibushi-shi PP

S-04 / CS Isa-shi Dai-ni PP

Panel Output /1,224.00kW
FIT Price /JPY 40/kWh
End of FIT Period /September 16, 2034

S-02 / CS Isa-shi PP

Panel Output /2,013.99kW
FIT Price /JPY 36/kWh
End of FIY Period /June 28, 2035

S-05 / CS Yusui-cho PP
Panel Output /931.77kW
FIT Price /JPY 40/kWh
End of FIT Period /June 8, 2035

S-03 / Kasama-shi PP

Panel Output /1,749.30kW
FIT Price /JPY 36/kWh
End of FIT Period /August 20, 2035

S-06 / CS Isa-shi Dai-san PP
Panel Output /2,127.84kW
FIT Price /JPY 40/kWh
End of FIT Period /June 25, 2035

Panel Output /2,225.08kW
FIT Price /JPY 40/kWh
End of FIT Period /September 15, 2035

Panel Output /636.00kW
FIT Price /JPY 32/kWh
End of FIT Period /September 15, 2036

S-15 / Tsuyama-shi PP

Panel Output /2,347.80kW
FIT Price /JPY 40/kWh
End of FIT Period /December 10, 2035

S-10 / Minamishimabara-shi PP (East & West)
Panel Output /3,928.86kW
FIT Price /JPY 40/kWh
End of FIT Period
December 24, 2035 (E)January 28, 2036 (W)S-11 / Minano-machi PP
Panel Output /2,448.60kW
FIT Price /JPY 32/kWh
End of FIT Period /December 6, 2036

S-12 / Kannami-cho PP
Panel Output /1,336.32kW
FIT Price /JPY 36/kWh
End of FIT Period /March 2, 2037

Panel Output /1,963.00kW
FIT Price /JPY 32/kWh
End of FIT Period /June 29, 2037

S-16 / CS Ena-shi PP
Panel Output /2,124.20kW
FIT Price /JPY 32/kWh
End of FIT Period /September 12, 2037

S-17 / CS Daisen-cho PP (A)/(B)Panel Output /20,885.76kW (A)6,416.64kW (B)FIT Price /JPY 40/kWh
End of FIT Period /August 9, 2037

S-18 / CS Takayama-shi PP
Panel Output /962.28kW
FIT Price /JPY 32/kWh
End of FIT Period /October 9, 2037

➢

Sponsor Pipeline

Targeting to achieve JPY100bn in asset size over the medium term by mainly acquiring from thesponsor pipeline.
Operational and underconstruction

Total sponsor portfolio

Under development

12projects, 137.9MW

26projects, 339.5MW

14projects, 201.6MW

ENR projects (Note)
3.90MW

The expected schedule of COD for the sponsor pipeline.
（MW）
450

Operational
MW（稼働済）Effort in ESG

➢

Under
MW（建設中）construction

Under
MW（開発中）development

On August 13, 2019, Canadian Solar Asset Management K.K (“The Company”)., the asset
management company of CSIF, announced that it signed the United Nations Principles of Responsible
Investment (UN PRI). The Company has been actively making ESG efforts in the Canadian Solar Groupand the operation of CSIF, and with the declaration of this signature, it will work on the operation of
CSIF, taking ESG (Environmental, Social and Governance) issues into consideration.
Major ESG-related efforts made thus far in the Canadian Solar Group and the operation of CSIF are
as follows.

Environmental (environmental considerations)
CSIF is contributing to the dissemination ofrenewable energy through its listing on theinfrastructure fund market and by raising funds fromthis market.
CSIF emphasizes environmentally conscious
operation in the surrounding areas, including the useof non-chemical panel cleaning fluid at its power
generation facilities.
The Company avoids excessive land development by
the sponsor, achieving for the installation of power
generation facilities that take advantage of theoriginal land form.

⚫
(as at Jun.30, 2019)

ENR projects
MW（ENR対象物件）

400⚫

339.5MW

350
300
159.4

250
200
150

100

2.6

50

62.7

0

39.2

0.4
27.1

⚫

1.2
105.7

14.7

32.2
稼働済

Operational

201.6

32.2
2019年

Aug.2019~
（
8月以降）

2020年

2020~

2021年

2021~

2022年

2022~

累計

Total

Social (social contributions)

Sponsor portfolio map● Operational● Under Construction● Under Development● Acquired by CSIFCS Gunma Takasaki KG PP（24.5 MW）

CS Hiroshima Suzuhari PP（17.9 MW）
CS Yamaguchi Hofu PP（7.0 MW）
CS Yamaguchi Aio Dai-ni PP（1.2 MW）
CS Fukuoka Saigawa PP（13.0 MW）
CS Oita Hiji-machi PP（53.4 MW）

3.9
E N R 対 象 物件

(Note)
ENR projects（注1）

CS Gunma
Gunma Minakami
Mizukami PP
CS（19.0 MW）
（19.0

Mashiki-machi, Kamimashiki-gun,
Kumamoto, where CS Mashiki-machi
Power Plant is located, was affected by
the 2016 Kumamoto earthquakes, andCanadian Solar Projects K.K., thesponsor who conducted development atthat time, provided relief supplies to thedisaster-stricken area. Canadian Solar
Projects K.K. continued development
even after the disaster and contributed
to employment promotion in the area.

⚫

CS Hokkaido Ishiari PP（2.4 MW）

CS Gunma
Gunma Minakami
MizukamiCS
Dai-ni PP（2.6PP（2.6 MW）
MW）
Dai-niCS Miyagi Kejonuma PP（0.9 MW）

CS Gunma Aramaki PP（19.0 MW）

CS Miyagi Angel land PP（9.2 MW）

CS Niigata Myoko PP（2.6 MW）

CS Miyagi Ogawara PP（7.2 MW）

CS Ishikawa ChausuyamaPP（8.9 MW）

CS Azuma-kofuji PP（100.0 MW）
CS Tochigi Kitsuregawa
PP（1.2 MW）

CS Oita Munechika PP（8.2 MW）

CS Ibaraki Kurusu PP（11.3 MW）

CS Kumamoto Mashiki
Dai-ni PP（1.2 MW）

Governance (corporate governance)⚫

CS Kumamoto Yamato PP（1.2 MW）

CS Ibaraki Kasama PP（12.0 MW）

CS Hiroshima Fukuyama PP（3.4 MW）

CS Shizuoka Tashiro
Dai-ni PP（0.4 MW）

CS Hyogo Kawanishi PP（1.0 MW）

CS Shizuoka Shuzenji PP（10.8 MW）⚫

The Company is working to strengthen governance by taking measures against the conflicts ofinterest and adopting an operation system that secures the third-party nature.
Operations are conducted under an appropriate check function among departments andpersons in charge due to the enhancement of the organizational structure, which has been
advocated since the second half of 2018.

1.

Overview of Fund Operation(Note 3) Unless otherwise described, the numbers are rounded down and the ratio are rounded up or down.

(1) Historical Operating Result of the FundFiscal Period

1st FP

2nd FP

3rd FP

4th FP

Fr. May 18,
2017
To Sep. 30,
2017-

Fr. Oct. 1,
2017
To Jun. 30,
2018
2,023

Fr. Jul. 1,
2018
To Dec. 31,
2018
1,785

Fr. Jan. 1,
2019
To Jun. 30,
2019
2,185

(Rental revenue of renewable energy power plants,
out of operating revenue) (in JPY mln)

-

2,023

1,785

2,185

Operating Expense (in JPY mln)

5

1,178

1,140

1,368

(Expense for rental of renewable energy power
plants, out of operating expense) (in JPY mln)

-

1,066

1,035

1,234

Operating Income / Loss (-) (in JPY mln)

-5

845

644

817

Ordinary Income / Loss (-) (in JPY mln)

-49

331

413

711

Operating Revenue (in JPY mln)

Net Income / Loss (-) (in JPY mln)

-49

330

412

710

Unitholders’ Capital (net) (Note 6) (in JPY mln)

150

17,315

21,902

21,4821,500

182,190

231,190

231,190101

35,841

46,77345,981-35,386.1

30.5

-1.7
22,193

Total number of units issued (unit)
Total Assets (in JPY mln)
(vs prior FP) (%)
Total Net Assets (in JPY mln)

100

17,59622,315(vs prior FP) (％)-

17,496.0

26.8

-0.5

Interest-bearing Liabilities (in JPY mln)-

18,10324,29723,513
95,996

Net Asset Value per Unit (Base price) (in JPY)

67,06596,58396,523

Total Distribution (in JPY mln)

-

428

832

843

Distribution per Unit (in JPY)

-

2,350

3,600

3,650

(DPU excl. distribution in excess of earnings, in JPY)

-

1,542

1,783

3,073

(Distribution in excess of earnings per unit, in JPY)
Return on Assets (Note4) (%)

-

808

1,817

577

-39.3

1.8

1.0

1.5

(annualized ratio) (Note5) (%)-105.4

2.8

2.0

3.1

Return on Capital (Note4) (%)

-39.4

3.7

2.1

3.2

(annualized ratio) (Note5) (%)-105.8

5.6

4.1

6.4

99.4

49.1

47.7

48.3

(vs prior FP) (%)

-

-50.3

-1.4

0.6

Distribution Payout Ratio (Note4) (%)

-

76.9

100.0

100.0
181

Capital Ratio (Note4) (%)[Other Information]
Number of Days for FP (days)

136

244

184

Number of Invested Asset as of End of FP

-

15

18

20

Depreciation Expenses (in JPY mln)

-

743

713

813

CAPEX (in JPY mln)

-

-

27

54

Rental NOI (Note4) (in JPY mln)

-

1,700

1,462

1,764

FFO (Funds from Operation) (Note4) (in JPY mln)
FFO per Unit (Note4) (in JPY)
Interest-bearing Liabilities Ratio (Note4) (%)

-49

1,074

1,125

1,523

-32,934

5,895

4,869

6,591

-

50.5

51.9

51.1

(Note 1) Fiscal periods of the fund are six months for January 1 to June 30 and July 1 to December 31 every year. The 1st
FP was from May 18, 2017 to September 30, 2017 and the 2nd FP was from October 1, 2017 to June 30, 2018.
Although the number of days for the 2nd FP was 273 days, the substantive operating period was from October 30,
2017 to June 30, 2018 (244 days).
(Note 2) Consumption taxes are not included in the operating revenue etc.

(Note 4) The calculation methods are as below.
Return on Assets
Ordinary Income / { (Total Assets at Beginning of FP + Total Assets at End ofFP) / 2 } x 100
Return on Capital
Net Income / { (Net Assets at Beginning of FP + Net Assets at End of FP) / 2 } x
100Capital Ratio
Net Assets at End of FP / Total Assets at End of FP x 100
Distribution Payout Ratio
DPU excl. distribution in excess of earnings / Net Income x 100
Rental NOI
Rental Revenue for renewable energy power generation facilities – Rental
Expenses for renewable energy power generation facilities + Depreciation
ExpensesFFO
Net Income + Depreciation Expenses + Profit from sales of renewable energy
power generation facilities
FFO per unit
FFO / The number of total issued units
Interest-bearing
Interest-bearing Liabilities / Total Assets x 100
Liabilities Ratio(Note 5) For the 1st FP, the actual days for the period is used for annualization. For the 2nd FP, the days for the substantive
operating period (244 days) is used for annualization instead of the actual number of days (273 days).
(Note 6) Deductible amount for unitholders’ capital is deducted from the gross amount of unitholders’ capital.

(2) Overview of the Fiscal Period under Review
a. Brief History of Canadian Solar Infrastructure Fund
Canadian Solar Infrastructure Fund, Inc. (hereinafter referred to as “CSIF”) was established on May 18, 2017with money invested of 150 million yen (1,500 units) by Canadian Solar Asset Management K.K. (hereafterreferred to as the “Asset Manager”) as the founder under the Act on Investment Trusts and Investment
Corporations (Act No. 198 of 1951 including subsequent amendments; hereinafter referred to as the “Investment
Trusts Act”). Registration with the Kanto Local Finance Bureau was completed on June 9, 2017 (registration
number 127, filed with the Director of the Kanto Local Finance Bureau).
CSIF issued additional investment units (177,800 units) through a public offering on October 27, 2017, listed its
investment units on Tokyo Stock Exchange Inc.’s (hereinafter referred to as the “Tokyo Stock Exchange”)
Infrastructure Fund Market on October 30, 2017 (security code: 9284), and issued new investment units (2,890
units) through third-party allotment on November 28, 2017.
In addition, CSIF issued new investment units (46,667 units) through public offering on September 6, 2018 andissued new investment units (2,333 units) through third-party allotment on October 4, 2018. As a result, the total
units issued at the end of the fiscal period under review (as of December 31, 2018) were 231,190 units.
b. Investment Environment
During the fiscal period under review, the Japanese economy recovered at a moderate pace in the first half,
despite economic trend indexes showing stagnant conditions. Moving into the second half, although the recovery
tone was maintained, overall assessments changed from starting to follow a downward trend to deteriorating interms of economic trend indexes, given signs of weakness partially visible in exports and production. Goingforward, attention needs to be paid to the trend of the Japanese economy over the coming months because thepossibility of an economic recession and economic uncertainty will increase due to the consumption tax hike
expected in October 2019, in addition to lingering downward risks attributable to overseas economic conditions.
In addition, it is becoming more likely that interest rates will fall in the U.S. and Europe against the backdrop ofsigns of an economic slowdown in the U.S., which has been relatively firm, and the advancement of theEuroskeptic group in the European assembly election. Under these conditions, a close eye should be kept on theimpact of the U.S.-China trade tensions on the global economy.
Reflecting hope for progress in the U.S.-China trade talks and rising expectations for the termination ofmonetary tightening in the U.S., the stock market in Japan reacted favorably after the start of 2019. Now,
adjustments are underway amid concerns over the global economic slowdown, movements of the exchange
market, and prolongation of the U.S.-China trade tensions. Meanwhile, the Infrastructure Fund Market, whose
neutrality to economic fluctuations and high yield rates draw people’s interest, has been following a recovery pathsince the beginning of the year.

In the environment surrounding renewable energy power generation facilities (stipulated in Article 2, Paragraph
3 of the Act on Special Measures Concerning Procurement of Electricity from Renewable Energy Sources byElectricity Utilities [Act No. 108 of 2011, including subsequent amendments; hereinafter referred to as the “Act on
Renewal Energy Special Measures”] [excluding those that fall under real estate]; hereinafter referred to as“renewable energy power generation facilities”) held by CSIF, Kyushu Electric Power Co., Inc. (hereinafterreferred to as “Kyushu Electric Power”) implemented a full-scale output control program across the Kyushu
mainland to request renewable energy operators the temporary termination of power generation throughphotovoltaic power generation facilities and wind power generation facilities (Note 1), starting from October 2018.
Initially, the program was expected to be implemented mainly on weekends in spring and summer, because notmany people use cooling and heating equipment and factories are not in operation. However, in 2019, theprogram was implemented for 16 days including weekdays in March, 20 days in April and 10 days in May.
Meanwhile, it became possible to increase the amount of renewable energy-based electricity provided from the
Kyushu area to other areas by approximately 300,000 kW at maximum from April, by utilizing the transfer
blocking system installed in the Kanmon interconnection line between the Kyushu mainland and Honshu. As aresult, Kyushu Electric Power can relax the output control on power generated by photovoltaic power generation
facilities and wind power generation facilities.
In consideration of the sharp increase in the number of the output control programs implemented in the service
area of Kyushu Electric Power in the spring, the Ministry of Economy, Trade and Industry indicated at a meetingof the Working Group on Systems of the New and Renewable Energy Subcommittee held in April 2019 the policyof extending the application of output control to photovoltaic power generation facilities of less than 500 kW(excluding those of less than 10 kW) connected under the previous rule (Note 2), which classifies such facilities
as not being subject to output control for the time being, and the guideline was unanimously approved by themembers. As of June 30, 2019, output control has not been implemented after May 12, 2019, partly due to thestart of regular inspections of the Genkai Nuclear Power Station Unit No.3 of Kyushu Electric Power on May 13,
2019.
With respect to the feed-in tariff system for renewable energy, the amount of photovoltaic power generation forbusiness that was authorized and introduced had increased rapidly since the commencement of the system inJuly 2012, and purchase prices fell to less than half (from ¥40 per kWh in 2012 to ¥18 per kWh in 2018, mainly
due to a decline in capital expenses). Against this background, an issue arose involving projects with nonoperating facilities, namely those not generating electric power generation yet maintaining a right to highpurchase prices. The Ministry of Economy, Trade and Industry has been taking a range of measures related tothis issue. As an additional step, with respect to photovoltaic power generation of 10 kW or greater, whichobtained authorization between 2012 and 2014, the ministry has decided to apply new purchase prices thatreflect the business costs at the time of the start of operation to projects with non-operating facilities (for whichconnection contracts were concluded by July 31, 2016) whose deadlines for the start of operation are notestablished, in sync with the timing of the start of operation, instead of high purchase prices based on costs atthe time when the authorization was granted. The Ministry of Economy, Trade and Industry has also decided totake steps to guarantee the start of operation as soon as possible. All renewable energy power generation
facilities owned by CSIF have already started operation; therefore these properties are not affected by the
introduction of the said steps.
Some media outlets reported that the Ministry of Economy, Trade and Industry started to consider theabolishment of the feed-in tariff system for renewable energy on June 12, 2019. If the ministry moves forwardwith the abolishment of the feed-in tariff system as reported by the media, it is unlikely to have a significant
impact on purchase prices of the photovoltaic power generation facilities in operation owned by CSIF.

expanding external growth. As a result, CSIF held and managed a portfolio consisting of 15 photovoltaic power
generation facilities, etc. (a total panel output of 75.3MW and a total price (Note 4) of ¥35,963 million) as of theend of the previous fiscal period.
During the previous fiscal period under review, CSIF acquired an additional three photovoltaic power
generation facilities, etc. on September 6, 2018 (a total panel output of 30.3MW and a total acquisition price of\11,530 million) using the net proceeds from the issuance of new investment units through public offering as well
as borrowings. As a result, CSIF held a portfolio consisting of 18 photovoltaic power generation facilities, etc. (atotal panel output of 105.6MW and a total price of \47,100 million) as of the end of the fiscal period under review.
CSIF achieved steady growth to an asset scale of over 100MW panel output for the first time as a listed
infrastructure fund.
In addition, during the fiscal period under review, CSIF acquired one facility on March 1, 2019 with cash on
hand and another facility on March 29, 2019 using borrowings and cash on hand, or a total of two facilities (atotal panel output of 3.3MW and a total acquisition price of \1,320 million). As a result, CSIF held a portfolio
consisting of 20 facilities (a total panel output of 108.9MW and a total price of \50,000 million) as of the end of the
fiscal period under review. In terms of asset scale, CSIF continued to be the largest operator among listed
infrastructure funds as of the end of the fiscal period under review.
(Note 1) “Photovoltaic power generation facilities” shall refer to renewable energy power generation facilities that generate
power by using sunlight, among other sources, as energy, while “Wind power generation facilities” refer torenewable power generation facilities that generate power by using wind power, among other sources, as energy.
The same shall apply hereunder.
(Note 2) “Previous rule” shall, as it pertains to photovoltaic facilities (excluding those of less than 10kW) installed in theservice area of Kyushu Electric Power, refer to the rule on output control that applies to photovoltaic power
generation facilities covered by connection requests, for which Kyushu Electric Power authorized interconnection
on or before January 25, 2015. The previous rule specifies that output control may be implemented for up to 30
days every year without any compensation, while no such restriction is set in the current rule.
(Note 3) “Panel output” shall mean output calculated by multiplying rated output per solar cell module (meaning the
maximum output stated in specifications of solar cell module) used in each solar energy facility by the total
number of panels. The same shall apply hereunder.
(Note 4) “Acquisition price” shall mean the sale and purchase price (excluding outsourcing service fees and otheracquisition expenses related to the acquisition of assets, property-related taxes, urban planning taxes,
consumption taxes and other fees and charges) described in the sale and purchase agreement pertaining to each
asset acquired. It shall be rounded down to the nearest one million yen. The same shall apply hereunder.
(Note 5) “Renewable energy power generation facilities, etc.” shall collectively refer to renewable energy power
generation facilities as well as real estate and the right of lease (including the right of sublease) of real estate or
the surface right (hereinafter referred to as “Site, etc.”) to install, maintain and operate the renewable energy
power generation facilities. In addition, “photovoltaic power generation facilities, etc.” shall collectively refer tophotovoltaic power generation facilities (of renewable energy power generation facilities, photovoltaic power
generation facilities shall specifically refer to renewable energy power generation facilities that generate powerusing solar light as the source of energy; the same shall apply hereunder) as well as real estate and the right oflease (including the right of sublease) of real estate or the surface right to install, maintain and operate
photovoltaic power generation facilities. The same shall apply hereunder.
(Note 6) “Price” shall mean the intermediate value calculated by CSIF using the appraisal value of each power plant as ofJune 30, 2018 for the second preceding fiscal period, December 31, 2018 for the previous fiscal period and as ofJune 30, 2019 for the fiscal period under review as stated in valuation reports obtained fromPricewaterhouseCoopers Sustainability LLC or Ernst & Young Transaction Advisory Services Co., Ltd.. The

c. Management Performance
During the fiscal period from October 1, 2017 to June 30, 2018, CSIF acquired 13 photovoltaic power
generation facilities, etc. (Note 3) on October 31, 2017 (a total panel output (Note 1) of 72.7MW and a totalacquisition price (Note 2) of ¥30,438 million) using the net proceeds from the issuance of new investment units
through public offering as well as borrowings in accordance with the basic asset management policy, etc. set
forth in its Articles of Incorporation, and commenced substantive investment operations. In addition, twophotovoltaic power generation facilities, etc. (a total panel output of 2.6MW and a total acquisition price of ¥992
million) were acquired on February 1, 2018 using borrowings with the aim of improving CSIF’s portfolio andsame shall apply hereunder.

d. Overview of Financing
In the fiscal period under review, CSIF undertook the borrowing of funds amounting to a total of ¥700 million in
March 2019. On the other hand, a contractual repayment was made at the end of the fiscal period under review,and the amount of borrowings as of the end of the fiscal period under review came to ¥23,513 million.
Consequently, the ratio of interest-bearing debt to total assets (ratio of interest-bearing debt to total assets at theend of fiscal period) was 51.1%.

e. Overview of Business Performance and Distributions
As a result of the management described above, the business performance in the fiscal period under review
recorded operating revenue of ¥2,185 million, operating income of ¥817 million (mainly due to the impact of
unseasonable weather), ordinary income of ¥711 million and net income of ¥710 million.
Pursuant to the cash distribution policy set forth in Article 47, Paragraph 1 of its Articles of Incorporation, CSIF
shall distribute an amount in excess of the amount equivalent to 90% of its distributable earnings as defined in
Article 67-15 of the Act on Special Measures Concerning Taxation.
In addition, distributions in excess of earnings are calculated on the premise that such distributions will
generally be made in accordance with the cash distribution policy prescribed in CSIF’s Articles of Incorporationand the Asset Manager’s asset management guidelines formulated as part of its internal regulations.
CSIF intends to make cash distributions to its unitholders for each fiscal period from free cash flow (hereinafterreferred to as “FCF”) generated by its renewable energy power generation facilities, in amounts determined in thefollowing manner. The amount available for distribution shall be calculated by multiplying FCF, that is net cash
flow (hereinafter referred to as “NCF”; CSIF shall incorporate the total amount of NCF remaining after deducting
distributions for the preceding fiscal periods in calculating NCF) to be vested to equity investors after deducting
FCF payable to debt investors, by a certain ratio (hereinafter referred to as “payout ratio”; The payout ratio for the
4th fiscal period is 48.0%.) determined by CSIF in light of the amount of NCF for each fiscal period.
At the same time, CSIF intends to maintain a stable level of distributions for the time being. In determining thepayout ratio described above, CSIF will consider the forecast NCF for each fiscal period to realize that level of
distributions.
In addition to a cash distribution within the range of profit, CSIF intends to make distributions in excess ofearnings for each fiscal period on a continuous basis in order to realize this policy.
In developing its performance forecast (including any revisions thereof) for each fiscal period, in the casewhere NCF calculated from actual energy output in a fiscal period (hereinafter referred to as “actual NCF”; CSIF
shall incorporate the total amount of NCF remaining after deducting distributions for the preceding fiscal periods
in calculating actual NCF) exceeds NCF projected for the fiscal period (hereinafter referred to as “projected
NCF”; CSIF shall incorporate the total amount of NCF remaining after deducting distributions for the preceding
fiscal periods in calculating projected NCF) on the basis of an energy output value projected by professional
specialists (P50) which forms the foundation for the calculation of rents with regard to the renewable energy
power generation facilities, CSIF intends to limit the cash distribution to the amount of projected NCF multipliedby the payout ratio for said fiscal period.
On the other hand, in the case where actual NCF is equal to or below projected NCF, CSIF intends to make acash distribution for the fiscal period at the amount of actual NCF multiplied by the payout ratio.
Based on the above policy, CSIF determined to make a distribution for the fiscal period under review of¥843,843,500, equivalent to 48.0% of projected NCF for the period (¥1,758,007,291). As a result, distribution inexcess of earnings is ¥133,396,630, after deducting dividends for the period of ¥710,446,870. Dividend perinvestment unit is ¥3,650 for the fiscal period under review.

(3) Summary of Public Offering etc.

Date

Event

Total number ofinvestment units issued
and outstanding (units)

Total amount ofunitholders' capital(Note 1) (million yen)

ChangeBalance

ChangeBalance

1,500

1,500

150

150

(Note 2)

177,800

179,300

16,891

17,041(Note 3)2,890

182,190274

17,315(Note 4)

46,667

228,857

4,509

21,824(Note 5)-

228,857(147)

21,677(Note 6)2,333

231,190

225

21,902(Note 7)-

231,190(420)

21,482(Note 8)Establishment upon
May 18, 2017private placement
Capital increase by
October 27, 2017
public offering
November 28,
Capital increase by
2017
third-party allotment
September 5,
Capital increase by
2018
public offering
Cash distribution in
September 14,
excess of earnings
2018(refund of investment)
Capital increase by
October 4, 2018
third-party allotment
March 14, 2019

Cash distribution inexcess of earnings(refund of investment)

Remarks(Note 1) The amount of deduction of total amount of unitholders’ capital is deducted.
(Note 2) In the establishment of the CSIF, the investment units were issued at an issue price of \100,000 per unit. The
party who applied for subscription of investment units upon the establishment is Canadian Solar Projects K.K.
(Note 3) New investment units were issued by public offering for the purpose of raising funds for the acquisition of
specified assets at an issue price of \100,000 (issue value of \95,000) per unit.
(Note 4) New investment units were issued to Mizuho Securities Co., Ltd. by third-party allotment at an issue value of\95,000 per unit for the purpose of appropriation to a part of the funds for acquisition of specified assets or part of
repayment of borrowings.
(Note 5) New investment units were issued by public offering for the purpose of raising funds for the acquisition of
specified assets at an issue price of \102,180 (issue value of \96,625) per unit.
(Note 6) CSIF decided, at a meeting of its Board of Directors held on August 14, 2018, to pay a cash distribution in excessof earnings (refund of investment) in an amount of \808 per unit for the second fiscal period (ended June 30,2018), and began to pay it from September 14, 2018.
(Note 7) New investment units were issued to Mizuho Securities Co., Ltd. by third-party allotment at an issue price of\96,625 per unit for the purpose of appropriation to a part of the funds for acquisition of specified assets or a partof the funds for repayment of borrowings.
(Note 8) CSIF decided, at a meeting of its Board of Directors held on February 15, 2019, to pay a cash distribution inexcess of earnings (refund of investment) in an amount of \1,817 per unit for the third fiscal period (ended
December 31, 2018), and began to pay it from March 14, 2019.

(4) Historical Distributions
Based on the unappropriated earnings of JPY 710mln for the 4th FP, after a rounding down for the amount below
JPY 1mln, JPY 710mln is the distribution for profit. Together with JPY 133mln of distribution in excess of earnings,
as the result, JPY 3,650 is the DPU for the period.
1st FP

2nd FP

3rd FP

4th FP

Fr. May 18,
2017
To Sep. 30,
2017

Fr. Oct. 1,
2017
To Jun. 30,
2018

Fr. Jul. 1,
2018
To Dec. 31,
2018

Fr. Jan. 1,
2019
To Jun. 30,
2019

Unappropriated Earnings or Undisposed Losses (inJPY thousand)-49,402

281,047

412,298

710,506

Retained Earnings (in JPY thousand)Fiscal Period-49,402

110

86

59

Total Distribution (in JPY thousand)-

428,146

832,284

843,843(DPU, in JPY)(-)

(2,350)(3,600)(3,650)Distribution for Profit (in JPY thousand)(-)-

280,936412,211

710,446(1,542)(1,783)(3,073)

147,209

420,072

133,396

(-)

(808)

(1,817)

(577)

-

-

-

-

(-)

(-)

(-)

(-)

Distribution as Redemption of Capital based on Tax Law(in JPY thousand)-

147,209

420,072

133,396(Distribution as Redemption of Capital based on Tax
Law, in JPY)

(-)

(808)

(1,817)(577)(Distribution for Profit per Unit, in JPY)
Distribution in Excess of Earnings (in JPY thousand)(Distribution in Excess of Earnings per Unit, in
JPY)
Distribution from Allowance for Adjustment for Temporary
Difference out of Distribution in Excess of Earnings (inJPY thousand)(Distribution from Allowance for Adjustment for
Temporary Difference per Unit out of Distribution in
Excess of Earnings per Unit, in JPY)

(Note) The fund makes distribution in excess of earnings every FP based on its article 47.2. Based on this policy, JPY
133mln which is 16.4% of the depreciation expenses, JPY 813mln, is to be distributed as the distribution in excessof earnings. As a result, JPY 3,650 is DPU for the 4th FP.

(5) Operational Policy and Agendas in the Futurea. Outlook for the Future Management
The Japanese economy is thought to already be in a recessionary phase after peaking in the fall of 2018. With(i) capital investments including those in facilities related to the Tokyo Olympics almost completed and (ii) the
consumption tax rate expected to be raised in October 2019, attention needs to be paid to the likelihood of
downward pressure being put on the economy, going forward. Given the strong possibility that the slowdown of
the U.S. economy will become apparent following the worsening of the Eurozone and Chinese economies, themarket is cautious about the possibility that it will enter a recessionary phase in the near future. It is also
necessary to monitor the likelihood of the appreciation of the yen against the U.S. dollar, given a backdrop of theending of circumstances that support an increase in interest rates and the rising expectations of lower interest
rates in the U.S.
With respect to the environment surrounding photovoltaic power generation facilities that are included inrenewable energy power generation facilities, as stated in “(I. Overview of the Fiscal Period under Review) b.
Investment Environment” above, with the goal of introducing renewable energy wherever possible while
simultaneously curbing the burden on the public, a decision was made on December 5, 2018 to apply newpurchase prices that reflect the business costs at the time of the start of operation, to projects with non-operating
facilities for photovoltaic power generation for business use, in sync with the timing of the start of operation,
instead of high purchase prices based on costs at the time the authorization was granted. Steps were also taken
to guarantee the start of operation as soon as possible.

The output control program, in which a request for the temporary termination of power generation was made tooperators of facilities that generate power through renewable energy such as sunlight, was implemented in theservice area of Kyushu Electric Power, starting from October 2018. If the introduced amount of renewable energy
continues to increase, going forward, this output control is likely to be implemented outside Kyushu region,
including in Tohoku region and Chugoku region. Meanwhile, to minimize output control, the Ministry of Economy,
Trade and Industry plans to enhance inter-regional connection line networks, one between Hokkaido and Tohoku
and the other between Tohoku and Tokyo, respectively, to use solar and other renewable energy-generated
electric power in broader areas, efficiently. In addition, to secure the necessary amount of power subject tocontrol by extending the application of output control, and to reduce each operator’s burden, the ministry has
indicated a policy of extending the application of output control on photovoltaic power generation, to photovoltaic
power generation facilities of less than 500 kW (excluding those of less than 10 kW) operating under the previous
rule which classifies such facilities as being outside the scope of output control for the time being. In addition to
the reduction of the controlled amount of overall renewable energy, the ministry appears to be ready to work on
facilitating online operation in conjunction with output control, so that power generation operators can reduce theloss of opportunities and lower personnel expenses.
b. Future Management Policy(i) External Growth Strategy
The Canadian Solar Group (Note 2), which is the Sponsor Group (Note 1) of CSIF, adopts the vertical
integration model that has developed mainly in the photovoltaic power generation market in Europe and America
and applies this model in the global market, including Japan. CSIF considers that mutual cooperation between
the Group and CSIF (engaging in investment in and management of photovoltaic power generation facilities)
through the Sponsor Group based on the vertical integration model for the construction of the value chain withthe aim of creating mutual value should lead to the enhancement of value for unitholders.
Specifically, CSIF intends to increase assets by utilizing the preferential trading negotiation right granted by theSponsor Group and acquiring photovoltaic power generation facilities, etc. whose value is high from the pipelinesof the Sponsor. In addition, CSIF will aim to acquire photovoltaic power generation facilities, etc. held by persons
other than the Sponsor Group by utilizing the Sponsor Group’s networks of brokers and power producers.
(Note 1) The “Sponsor Group” collectively refer to (i) the Sponsor (Canadian Solar Projects K.K.), (ii) special purpose
companies (they may be hereinafter referred to as “SPCs”), partnerships or other funds with which the Sponsor hasentered into the asset management service agreement, (iii) Canadian Solar O&M Japan K.K. (it may be hereinafterreferred to as “CSOM Japan”) and (iv) special purpose companies, partnerships or other funds in which the Sponsor or its
subsidiary own a majority interest. The same will apply below.
(Note 2) The “Canadian Solar Group” refers to the consolidated corporate group with Canadian Solar Inc.
(headquartered in Canada) at the top to which the Sponsor (Canadian Solar Projects K.K.) belongs.

(ii) Internal Growth Strategy
CSIF will contract out O&M (Note) to CSOM Japan, which is a wholly owned subsidiary of the Sponsor andprovides O&M services in Japan, in principle, for the availability of homogeneous O&M services to the extent that
CSIF considers essential. CSIF aims to thereby reduce the operational risk and operating costs by utilizing theservices of CSOM Japan and placing a blanket order, respectively.
By making the most of the strong operation and management abilities realized by utilizing the global monitoring
platform of the Sponsor Group in the early discovery and repair of failures of power generation facilities, CSIF will
aim to reduce the loss of power generation. In addition, CSIF will implement the appropriate repair and facilities
replacement of assets under management to maintain and enhance the value of assets from the medium- tolong-term perspective, thereby securing stable revenue in the medium to long term.
(Note) “O&M” is an abbreviation of Operation & Maintenance. The same will apply below.

(iii) Financial Strategy
To secure stable revenue and ensure the growth of the managed assets of CSIF, CSIF will consider financing
by public offering, borrowings and other means in the acquisition of new assets, while watching changes in thefinancing environment closely.

(6) Subsequent Event

Mazars Sarl (Partner)
Mazars FAS K.K. (Representative Director)
Zuken Inc. (Audit and Supervisory board member)

Not applicable.

2.

Overview of Fund Corporation
Eriko Ishii (Note 3)(1) Summary of Invested Capital
1st FP

2nd FP

3rd FP

4th FP

Sep. 30,
2017

Jun. 30,
2018

Dec. 31,2018

Jun. 30,2019

10,000,000

10,000,000

10,000,000

10,000,000

Total Number of Units Issued

1,500

182,190

231,190

231,190

Unitholders’ Capital (net) (Note) (in JPY mln)

150

17,315

21,902

21,482

1

5,753

9,815

11,143Fiscal Period
The Number of Units Allowed for Issuance

The Number of Unitholders

interest related to the fund.
(Note 2) Yoshihisa Otake resigned the executive director on May 18, 2019 and Tetsuya Nakamura assumed the position
on May 19, 2019.
(Note 3) Michihiko Takebe resigned the supervisory director and Eriko Ishii was elected to the position at the 2ndunitholders’ meeting on March 28, 2019.

b.

Canadian Solar Project K.K.

33,895

14.66

12,774
5,414

5.52
2.34

Individual
The Bank of Fukuoka, Ltd.

4,399
3,430

1.90
1.48

CITIBANK INTERNATIONAL PLC AS TRUSTEE FOR
STANDARD LIFE WEALTH PHOENIX FUND

3,292

1.42

Individual

1,662

0.71

Individual

1,556

0.67

Individual

1,500

0.64

1,500

0.64

69,42230.02(Note) The ratio is rounded down.

Executive Director(Note 2)

Supervisory Director

Name
Tetsuya Nakamura
Yoshihisa Otake

made by unitholders’ meeting.
(4) Asset Manager, Asset Custodian and Administrator
Asset manager, asset custodian and administrator as of June 30, 2019 are as follows.
Delegated Position

3.

Concurrent Post
Representative director of Canadian Solar AssetManagement K.K.
Representative director of Canadian Solar AssetManagement K.K.

Michihiko Takabe(Note 3)

Akira Watanabe Law Office (Attorney at law)
Seikei University Laws School (Professor)
Ministry of Internal Affairs and Communications(Member of the Severance Pay and Pension
Examination Committee)

Takashi Handa

Mazars WB Audit Corporation (Corporate
representative)

Name

Asset Manager

Canadian Solar Asset Management K.K.

Asset Custodian
Administrator (Institutional Operation)

Sumitomo Mitsui Trust Bank, Ltd.
Sumitomo Mitsui Trust Bank, Ltd.

Administrator (Custodian of List of Unitholders)
Administrator (Accounting)

Sumitomo Mitsui Trust Bank, Ltd.
Ernst & Young Tax Co.

Overview of Assets under Management(1) Composition of Assets and Regional Diversification(3) Summary of Executives
a. Executive Director, Supervisory Director and Accounting Auditor
Position

The policy on decision of removal / not-to-reappoint of accounting auditor
Decision of removal is made based on Investment Trust Law and not-to-reappoint is

Ratio vs Total Numberof Units Issued (%)

SSBTC CLIENT OMNIBUS ACCOUNTGOLDMAN SACHS INTERNATIONAL

Total

8,500

may be in a position of executive officer of any corporations other than stated above, there is no conflict ofMajor unitholders as of June 30, 2019 are as follows.

Yamato Shinkin Bank-

(Note 1) The executive directors and the supervisory director don’t hold the fund’s unit. Although the supervisory directors(2) Major Unitholders List
The Number of Units
Held

Grant Thornton
Taiyo LLC

Accounting Auditor(Note) Deductible amount for unitholders’ capital is deducted from the gross amount of unitholders’ capital.

Name

Shin Saiwai Law Office (Partner, Attorney at law)
Itochu REIT Management Co., Ltd. (Member ofthe compliance committee)

Compensation(in JPY thousand)Type of asset-

Solar energy
facility

2,400

Land

Region (Note 1)

Total Asset-Under-Management (AUM)(‘000yen)(Note 2)% of total AUM(Note 3)

Hokkaido/Tohoku

1,040,655

2.3

Kanto

2,461,223

5.4

Tokai

1,418,596

3.1

Chugoku/Shikoku

10,484,457

22.8

Kyushu22,292,578

48.5

Subtotal

37,697,511

82.0

48,9700.1

Hokkaido/Tohoku

Kanto647,430

1.4

Tokai

63,3090.1

Chugoku/Shikoku

522,185

1.1

3,184,875

6.9

KyushuSubtotal

4,466,771

9.7

Hokkaido/Tohoku

17,9240.0

Kanto

59,1970.1

Tokai41,4230.1

Chugoku/Shikoku

3,415

0.0

Kyushu390,4500.8

Subtotal

512,411

1.1

Hokkaido/Tohoku

1,107,550

2.4

Kanto

3,167,851

6.9

Tokai

1,523,330

3.3

Chugoku/Shikoku

11,010,058

23.9

Kyushu25,867,904

56.3

Subtotal

42,676,695

92.8

Solar energy facility etc. total

42,676,695

92.8

Saving/other assets

3,304,406

7.2

Land lease

Solar energy
facility etc.

Asset total (2)45,981,101

100.0(3) Details of Assets
a. Details of Power Generation Facilities(i)

PropertyandEquipment

Net
EndingBalance

Abstract

17790(Note)

2,191

785

36,418(Note)

521

32

10

488

(Note)

-

4,466

-

-

4,466

(Note)

-

6

-

-

-

-

43,0461,393

644,4332,269

813

42,164

494

17

-

512

-

-

512

3

0

-

3

1

0

2

498

18

-

516

1

0

515

Increasein the FP

Decreasein the FP

EndingBalance

Structures

797

38

-

835

45

MachineryandEquipment

37,427

1,182-

38,610Tools,
Furniture and
Fixtures

505

15

-

4,309

157

6

Land
Constructionin Progress
Total
Leasehold
RightsSoftwareIntangible
Assets

Accumulated
Depreciation /Amortization
For
this
FP

Beginning
Balance

Type of Asset

Total(Note)(Note) The increases for the 4th FP are related to the acquisition of the power plants on March 1 and March 29, 2019.

(ii)

Details of Power Generation Facilities
PPA
PurchasePrice(yen/kwh)(Note 2)

Certification Date
(Note 3)

FIT Term End(Note 4)

Asset #

Category

Project Name

Location

Site Area(m2)(Note 1)

S-01

Solar Plant
etc.

CS Shibushi-shi
Power Plant

Shibushi-shi,
Kagoshima

19,86140

February 26, 2013

September 16,
2034

Solar Plant
etc.

CS Isa-shi Power
Plant

Isa-shi,Kagoshima

22,22340

February 26, 2013

June 8, 2035

Solar Plant

CS Kasama-shi

Kasama-shi,

42,666etc.

Power Plant

Ibaraki(Note 5)40

January 25, 2013

June 25, 2035

S-04

Solar Plant
etc.

CS Isa-shi Dai-niPower Plant

Isa-shi,Kagoshima

31,81836

October 2, 2013

June 28, 2035

(2) Major Assets List
The summary of the top 10 assets as of June 30, 2019 is as follows.

Summary

Rental Revenue Earned
by Infrastructure Asset(in JPY thousand)Book Value(in JPY mln)

S-02

CS Mashiki-machi Power Plant

912,334

19,165

S-03

CS Daisen-cho Power Plant (A) and (B)574,967

10,237

CS Minamishimabara-shi Power Plant

90,8591,644

CS Minano-machi Power Plant

50,525

1,007

CS Hiji-machi Power Plant

53,755

973

S-05

March 14, 2014

August 20, 2035

937
899

Aira-gun,Kagoshima

36

48,56847,860CS Yusui-cho
Power Plant

25,274

CS Ashikita-machi Power Plant
CS Isa-shi Dai-san Power Plant

Solar Plant
etc.

S-06

February 26, 2013

875
860

Isa-shi,Kagoshima

40

52,79629,758CS Isa-shi Dai-sanPower Plant

40,736

CS Kasama-shi Power Plant
CS Marumori-machi Power Plant

Solar Plant
etc.

September 15,
2035

S-07

Kasama-shi,
Ibaraki

40

January 25, 2013

800
37,397

CS Kasama-shi
Dai-ni Power Plant

53,27551,284
1,912,706

Solar Plant
etc.

September 23,
2035

S-08

Solar Plant
etc.

CS Hiji-machi
Power Plant

Hayami-gun, Oita

30,24636

July 16, 2013

October 12, 2035

Name of Infrastructure Asset

CS Kasama-shi Dai-ni Power Plant
Total

S-09

S-10

Solar Plant
etc.

CS Ashikita-machi
Power Plant

Ashikita-gun,
Kumamoto

Solar Plant
etc.

CS
Minamishimabarashi Power Plant(East) / CS
Minamishimabarashi Power Plant(West)

Minamishimabar
a-shi, Nagasaki

45,74040

February 26, 2013

Asset #

56,06640

February 26, 2013
(East)
February 26, 2013
(West)

December 24,
2035 (East)
January 28, 2036
(West)

S-11

Solar Plant
etc.

CS Minano-machi
Power Plant

Chichibu-gun,
Saitama

44,90432

December 11, 2014

December 6,
2036

S-12

Solar Plant
etc.

CS Kannami-cho
Power Plant

Tagata-gun,Shizuoka

41,33936

March 31, 2014

March 2, 2037

S-13

Solar Plant
etc.

CS Mashiki-machi
Power Plant

Kamimashikigun, Kumamoto

638,552(Note 6)

S-14

Solar Plant
etc.

CS Koriyama-shi
Power Plan

Koriyama-shi,
Fukushima

30,376(Note 5)

S-15

Solar Plant
etc.

CS Tsuyama-shi
Power Plant

Tsuyama-shi,
Okayama

31,059

CS Ena-shi PowerPlant

Aza Ochise,
Kusumi,
Osashima-cho,
Ena-shi, Gifu

S-16

S-17

Solar Plant
etc.

Solar Plant
etc.

CS Daisen-choPower Plant (A) and(B)

Aza Magoese,
Toyofusa,
Daisen-cho,
Saihaku-gun,Tottori (A)Aza Kamikawara,
Toyofusa,
Daisen-cho,
Saihaku-gun,

36

October 24, 2013

June 1, 2037

32

February 27, 2015

September 15,
2036

32

September 26, 2014 June 29, 2037

37,37332

February 24, 2015

September 12,
2037

S-18

CS Takayama-shi
Power Plant

S-01

S-02

S-03
S-04
S-05

S-07

S-08
452,760(Note 7)40

February 22, 2013
(A)
February 28, 2013
(B)

August 9, 2037

Project nameOperator

PPA company

Fiscal period

solar plants

Priceend valuation(million yen)(Note 3)

book value(million yen)(million yen)(upper：solar energy(million yen)

(Note 1)

(Note 2)

facility)(Note 4)

S-09

CS Shibushi-shi

Tida Power 01

Kyushu Electric PowerPower Plant

G.K

Co., Inc

CS Isa-shi Power

Tida Power01

Kyushu Electric Power

Plant

G.K.

Co., IncCS Kasama-shi

Tida Power01

TEPCO Energy

Power Plant

G.K.

Partner, Incorporated

CS Isa-shi Dai-ni

Tida Power01

Kyushu Electric PowerPower Plant

G.K.

Co., Inc

CS Yusui-cho Power Tida Power01

Kyushu Electric Power

Plant

G.K.

Co., Inc

CS Isa-shi Dai-san

Tida Power01

Kyushu Electric PowerPower Plant

G.K..

Co., IncCS Kasama-shi Dai- Tida Power01

TEPCO Energy

ni Power Plant

Partner, Incorporated

G.K..

CS Hiji-machi Power Tida Power01

Kyushu Electric Power

Plant

G.K.

Co., IncCS Ashikita-machi

Tida Power01

Kyushu Electric PowerPower Plant

G.K..

Co., Inc

Tida Power 01

Kyushu Electric Power

G.K.

Co., Inc

540

607

372

408

907

1,082

778

847

670

730

949

1,033

850

923

1,029

1,111

989

1,081

S-10
32

January 30, 2015

472
135
387
21
815
267
808
38
698
31
973
59

520

355

875
737
636
899

49
1,069
41
1,041
39

800

973
937

CS
shi Power Plant

16,278(Note 5)

Fiscal period end

874

Minamishimabara-

Shingumachi,
Takayama-shi,
Gifu(East) / CS
Minamishimabara-

October 9, 2037

1,909
1,733

1,988

1,644
78

shi Power Plant(West)

S-19

Solar Plant
etc.

CS Misato-machi
Power Plant

Misato-machi,
Kodama-gun,
Saitama

25,31532

January 6, 2015

March 26, 2037

S-11

S-20

Solar Plant
etc.

CS Marumori-machi
Power Plant

Marumori-machi,
Igu-gun, Miyagi

65,306(Note 8)36

February 28, 2014

July 12, 2038

S-12

(Note 1) The numbers for “Site Area” are not equal to the real situation but based on the ground register.
(Note 2) “PPA Purchase Price” are the FIT price for each power plant (excluding consumption tax amount).
(Note 3) “Certification Date” denotes the date each power plant is certified under the article 6.1 of Revision Renewable
Energy Special Measures Law. Each power plant is deemed being certified on April 1, 2017 based on the article

S-13
S-14

9.3 of Revision Renewable Energy Special Measures Law.
(Note 4) “FIT Term End” denotes the date 20-year FIT term ends for each power plant.

S-15(Note 5) The number for the site area is only for the power plant’s land ownership rights and doesn’t include easement.
(Note 6) The number for the site area is only for the power plant’s and self-employed line’s land ownership rights andS-16

doesn’t include easement.
(Note 7) The number for the site area is only for the power plant’s and self-employed line’s surface right and doesn’t
include leasehold right and easement.

S-17(Note 8) The number for the site area is only for the power plant’s, self-employed line’s and access road’s surface rightand doesn’t include easement.

CertifiedAcquisition(lower：land)

S-06

Tottori (B)Solar Plant
etc.

Appraisal value ofDecember 10,
2035

S-18

CS Minano-machi

Tida Power01

TEPCO Energy

Power Plant

G.K.

Partner, Incorporated

CS Kannami-cho

Tida Power01

TEPCO Energy

Power Plant

G.K..

Partner, Incorporated

CS Mashiki-machi

Tida Power01

Kyushu Electric PowerPower Plan

G.K.

Co., Inc.

CS Koriyama-shi

Tida Power01

Tohoku Electric PowerPower Plan

G.K..

Co., Inc.

CS Tsuyama-shi

Tida Power01

The Chugoku ElectricPower Plan

G.K..

Power Co., Inc.

CS Ena-shi Power

Tida Power01

The Chubu Electric

Plant

G.K..

Power Co., Inc.

CS Daisen-cho

Tida Power01

Power Plant (A) and G.K..

The Chugoku ElectricPower Co., Inc.

(B)

(Note 5)

CS Takayama-shi

Tida Power01

The Chubu ElectricPower Plant

G.K.

Power Co., Inc.

1,018

1,173

514

593

20,084

23,465

246

272

746

817

757

868

10,447

11,310

326

359

909
264
551
41
20,195
222
50
690
127
832
36

1,007
490
19,165
246
772
702

10,960350
298
61

10,237

329

S-19

S-20

CS Misato-machi
Power Plant
CS Marumori-machi
Power Plant

Univergy 01 G.K.

TEPCO Energy
Partner, Incorporated

CLEAN

Tohoku Electric Power

ENERGIES

Co., Inc.

470

488

850

866

44,28150,026

484

123

5,100

Accounting Item
42,676(Note 1) Acquisition price is based on acquisition price as described in the purchase agreements (excluding acquisition
expenses related to the payment of outsourcing service fees, property-related taxes, taxes on depreciable assets,urban planning taxes, consumption taxes and other fees).
(Note 2) Median project valuation report amount is the median amount that we calculated based on the estimated values
as of June 30, 2019 provided to us by PricewaterhouseCoopers Sustainability LLC or Ernst & Young Transaction
Advisory Services Co., Ltd. in its project valuation report. Based on the appraised value in the range stated in thevaluation report with the date of the value opinion on June 30, 2019, which was obtained fromPricewaterhouseCoopers Sustainability LLC or Ernst & Young Transaction Advisory Services Co., Ltd., theInvestment Corporation calculated the total sum of the intermediate values according to Article 41, paragraph 1 of
the CSIF's Articles of Incorporation, and the said sum is used in the statement.
(Note 3) On the upper row of the appraisal value of solar plants, an assumed appraisal value of solar energy projects thatis obtained by deducting the real estate appraisal value calculated by Daiwa Real Estate Appraisal Co., Ltd. fromthe appraised value at the end of the period in (Note 2) above is stated, and on the lower row, an amount statedin the real estate appraisal report prepared by Daiwa Real Estate Appraisal Co., Ltd. is stated. Real estateincludes its superficies right.
(Note 4) Fiscal period end book value is the book value of solar energy as of June 30, 2019.
(Note 5) Former certified operator, CLEAN ENERGIES XXI G.K., was merged into Tida Powe01 G.K. as of March 19,
2019.

Operational Results of Each Power Generation Facilities (in JPY thousand)860

17
44,925(iii)

S-01 CS Shibushi-shi Power Plant

848

SOLUTIONS K.K.
Total

365

1st FP

2nd FP

3rd FP

4th FP

Fr. May 18,
2017
To Sep. 30,
2017

Fr. Oct. 1,
2017
To Jun. 30,
2018

Fr. Jul. 1,
2018
To Dec. 31,
2018

Fr. Jan. 1,
2019
To Jun. 30,
2019

Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)-

24,112
12,19736,31019,235
7,474
26,71018,727
6,605
25,332

-

2,665
2,665
2,573
2,376
197
12,608593
11,95955
17,847
18,463

2,664
2,664
1,912
1,745
166
9,456
445
8,969
41
14,032
12,677

2,254
2,254
1,907
1,701
205
9,459
447
8,970
41
13,621
11,711

S-02 CS Isa-shi Power Plant

Accounting Item

Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)

1st FP

2nd FP

3rd FP

4th FP

Fr. May 18,
2017
To Sep. 30,
2017

Fr. Oct. 1,
2017
To Jun. 30,
2018

Fr. Jul. 1,
2018
To Dec. 31,
2018

Fr. Jan. 1,
2019
To Jun. 30,
2019-18,1909,608
27,79914,244
7,166
21,411

14,313
5,648
19,961

-

1,349
1,349
3,034
1,808
170
1,055
10,445341
10,07923
14,82912,969

1,346
1,346
2,248
1,328
141
778
7,833
256
7,559
17
11,428
9,982

1,699
1,699
2,261
1,299
168
794
7,835
256
7,561
17
11,7968,165

S-03 CS Kasama-shi Power Plant

Accounting Item

S-05 CS Yusui-cho Power Plant
1st FP

2nd FP

3rd FP

4th FP

1st FP

2nd FP

3rd FP

4th FP

Fr. May 18,
2017
To Sep. 30,
2017

Fr. Oct. 1,
2017
To Jun. 30,
2018

Fr. Jul. 1,
2018
To Dec. 31,
2018

Fr. Jan. 1,
2019
To Jun. 30,
2019

Fr. May 18,
2017
To Sep. 30,
2017

Fr. Oct. 1,
2017
To Jun. 30,
2018

Fr. Jul. 1,
2018
To Dec. 31,
2018

Fr. Jan. 1,
2019
To Jun. 30,
2019

Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)-

43,712
17,15460,86629,54911,846
110
41,50635,327
17,266
202
52,796

-

3,050
3,050
4,665
4,296
368
19,283433
18,80545
26,99933,866

3,050
3,050
4,359
3,033
1,025
299
14,462324
14,10433
21,872
19,634

3,791
3,791
3,277
2,931
346
14,462324
14,10433
21,532
31,264S-04 CS Isa-shi Dai-ni Power Plant

Accounting Item

Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)

Accounting Item

Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)-

33,203
11,83145,034

23,595
10,41034,006

26,827
5,533
32,361

-

2,635
2,635
5,389
3,396
305
1,687
18,972761
17,897313
26,997
18,036

2,634
2,634
4,010
2,494
252
1,263
14,229571
13,423
235
20,873
13,132

3,277
3,277
3,987
2,425
298
1,263
14,242582
13,425
235
21,507
10,853S-06 CS Isa-shi Dai-san Power Plant
1st FP

2nd FP

3rd FP

4th FP

1st FP

2nd FP

3rd FP

4th FP

Fr. May 18,
2017
To Sep. 30,
2017

Fr. Oct. 1,
2017
To Jun. 30,
2018

Fr. Jul. 1,
2018
To Dec. 31,
2018

Fr. Jan. 1,
2019
To Jun. 30,
2019

Fr. May 18,
2017
To Sep. 30,
2017

Fr. Oct. 1,
2017
To Jun. 30,
2018

Fr. Jul. 1,
2018
To Dec. 31,
2018

Fr. Jan. 1,
2019
To Jun. 30,
2019-37,574
16,48154,056

29,412
11,59041,00329,51010,641
40,152

-

2,962
2,962
6,360
3,909
326
2,124
21,926408
21,46355
31,24922,807

2,964
2,964
5,150
2,871
418
269
1,590
16,445306
16,09741
24,55916,443

3,768
3,768
5,236
2,866
458
320
1,590
16,449306
16,101
41
25,454
14,697

Accounting Item

Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)-

45,112
19,79964,91235,02815,05650,08535,695
12,16547,860

-

3,525
3,525
7,387
4,319
348
2,719
26,377386
25,922
68
37,29027,621

3,526
3,526
5,500
3,172
290
2,036
19,783290
19,44151
28,80921,275

4,494
4,494
5,551
3,080
84
349
2,036
19,784290
19,44351
29,83018,030S-07 CS Kasama-shi Dai-ni Power Plant

Accounting Item

S-09 CS Ashikita-machiPower Plant
1st FP

2nd FP

3rd FP

4th FP

1st FP

2nd FP

3rd FP

4th FP

Fr. May 18,
2017
To Sep. 30,
2017

Fr. Oct. 1,
2017
To Jun. 30,
2018

Fr. Jul. 1,
2018
To Dec. 31,
2018

Fr. Jan. 1,
2019
To Jun. 30,
2019

Fr. May 18,
2017
To Sep. 30,
2017

Fr. Oct. 1,
2017
To Jun. 30,
2018

Fr. Jul. 1,
2018
To Dec. 31,
2018

Fr. Jan. 1,
2019
To Jun. 30,
2019

Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)-

43,063
16,95960,02329,161
12,35441,51634,897
16,386
51,284

-

3,371
3,371
7,526
4,084
346
3,095
23,453
310
23,08557
34,35025,672

3,370
3,370
6,000
3,318
285
2,396
17,604247
17,31442
26,975
14,541

4,304
4,304
6,964
3,532
700
335
2,396
17,604247
17,31442
28,873
22,410S-08 CS Hiji-machi Power Plant

Accounting Item

Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)

Accounting Item

Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)-

44,791
21,11465,90637,301
15,543
52,84535,753
12,81548,568

-

3,973
3,973
7,205
4,557
402
2,245
26,937
1,921
24,679336
38,11627,789

3,972
3,972
5,431
3,347
66
336
1,681
20,203
1,441
18,509252
29,60623,238

4,879
4,879
5,337
3,249
406
1,681
20,207
1,441
18,514252
30,424
18,144S-10 CS Minamishimabara-shi Power Plant (East and West)
1st FP

2nd FP

3rd FP

4th FP

1st FP

2nd FP

3rd FP

4th FP

Fr. May 18,
2017
To Sep. 30,
2017

Fr. Oct. 1,
2017
To Jun. 30,
2018

Fr. Jul. 1,
2018
To Dec. 31,
2018

Fr. Jan. 1,
2019
To Jun. 30,
2019

Fr. May 18,
2017
To Sep. 30,
2017

Fr. Oct. 1,
2017
To Jun. 30,
2018

Fr. Jul. 1,
2018
To Dec. 31,
2018

Fr. Jan. 1,
2019
To Jun. 30,
2019-

48,091
26,45874,54937,673
17,65055,32337,94915,80553,755

-

4,113
4,113
8,278
5,064
442
2,771
29,4191,113
28,153
152
41,81032,738

4,112
4,112
5,682
3,733
75
361
1,512
22,064835
21,114114
31,85823,464

5,167
5,167
5,622
3,562
419
1,639
22,066835
21,116114
32,85520,899Accounting Item

Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)-

80,84742,444
123,291

65,85430,406
96,26063,48827,37090,859

-

6,747
6,747
13,894
7,627
571
5,696
46,965985
45,647331
67,60755,6836,744
6,744
10,331
5,601
469
4,260
35,224739
34,235248
52,29943,9608,533
8,533
11,314
6,502
551
4,260
35,224739
34,235248
55,07135,787

S-11 CS Minano-machi Power Plant

Accounting Item

S-13 CS Mashiki-machi Power Plant
1st FP

2nd FP

3rd FP

4th FP

1st FP

2nd FP

3rd FP

4th FP

Fr. May 18,
2017
To Sep. 30,
2017

Fr. Oct. 1,
2017
To Jun. 30,
2018

Fr. Jul. 1,
2018
To Dec. 31,
2018

Fr. Jan. 1,
2019
To Jun. 30,
2019

Fr. May 18,
2017
To Sep. 30,
2017

Fr. Oct. 1,
2017
To Jun. 30,
2018

Fr. Jul. 1,
2018
To Dec. 31,
2018

Fr. Jan. 1,
2019
To Jun. 30,
2019

Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)-

45,753
17,427
6
63,18730,8439,769
140,61435,51915,00550,525

-

4,907
4,907
5,128
4,753
374
20,8191,021
19,79830,85532,331

4,904
4,904
4,143
3,491
330
321
15,798766
15,031
24,845
15,769

4,412
4,412
3,953
3,372
178
402
16,132766
15,36624,49926,025

S-12 CS Kannami-cho Power Plant

Accounting Item

Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)

Accounting Item

Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)-

852,054
412,102
1,264,157

691,759
254,45012
946,222664,560
247,774
912,334-

112,207112,207
89,59081,8987,659
32459,030
4,625
443,887
10,518660,827
603,329

112,206
112,206
67,63861,1686,397
71344,335
3,531
332,915
7,888
524,180
422,042

96,65096,65068,91861,1687,703
45344,340
3,531
332,915
7,893
509,908
402,426

S-14 CS Koriyama-shi Power Plant
1st FP

2nd FP

3rd FP

4th FP

1st FP

2nd FP

3rd FP

4th FP

Fr. May 18,
2017
To Sep. 30,
2017

Fr. Oct. 1,
2017
To Jun. 30,
2018

Fr. Jul. 1,
2018
To Dec. 31,
2018

Fr. Jan. 1,
2019
To Jun. 30,
2019

Fr. May 18,
2017
To Sep. 30,
2017

Fr. Oct. 1,
2017
To Jun. 30,
2018

Fr. Jul. 1,
2018
To Dec. 31,
2018

Fr. Jan. 1,
2019
To Jun. 30,
2019-24,748
11,23335,982

18,5505,241
23,791

19,6449,060
28,705

-

2,772
2,772
4,539
2,594
119
1,826
12,837461
12,302
73
20,14915,832

2,770
2,770
3,978
1,905
125
1,947
9,639
357
9,226
55
16,388
7,402

2,398
2,398
3,735
1,840
42
198
1,653
9,662
380
9,226
55
15,796
12,908

Accounting Item

Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)

-

7,267
4,627
11,895

7,619
3,978
2
11,6008,085
5,215
13,300

-

768
768
3,492
272
3,220
4,261
7,633

1,081
922
158
4,191
327
3,864
5,272
6,328

1,298
1,298
990
883
106
4,191
327
3,864
6,479
6,820

S-15 CS Tsuyama-shi Power Plant

Accounting Item

S-17 CS Daisen-cho Power Plant (A and B)
1st FP

2nd FP

3rd FP

4th FP

1st FP

2nd FP

3rd FP

4th FP

Fr. May 18,
2017
To Sep. 30,
2017

Fr. Oct. 1,
2017
To Jun. 30,
2018

Fr. Jul. 1,
2018
To Dec. 31,
2018

Fr. Jan. 1,
2019
To Jun. 30,
2019

Fr. May 18,
2017
To Sep. 30,
2017

Fr. Oct. 1,
2017
To Jun. 30,
2018

Fr. Jul. 1,
2018
To Dec. 31,
2018

Fr. Jan. 1,
2019
To Jun. 30,
2019

Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)-

21,83013,23335,064

22,253
10,44732,701

24,444
12,66837,113

-

2,371
2,371
10,640290
10,095254
13,01122,052

3,156
2,846
310
12,768348
12,114304
15,924
16,776

3,901
3,901
10,045
2,727
7,096
221
12,946365
12,276304
26,893
10,219S-16 CS Ena-shi Power Plant

Accounting Item

Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)

Accounting Item

Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)--

211,123
29,966
241,089

327,901
247,066
574,967--

34,45023,490
140
2,511
8,308
136,406
3,088
132,820497
170,857
70,232

59,954
59,95454,49836,805
4,622
13,070214,526
4,863
208,879782
328,979
245,988

S-18 CS Takayama-shi Power Plant
1st FP

2nd FP

3rd FP

4th FP

1st FP

2nd FP

3rd FP

4th FP

Fr. May 18,
2017
To Sep. 30,
2017

Fr. Oct. 1,
2017
To Jun. 30,
2018

Fr. Jul. 1,
2018
To Dec. 31,
2018

Fr. Jan. 1,
2019
To Jun. 30,
2019

Fr. May 18,
2017
To Sep. 30,
2017

Fr. Oct. 1,
2017
To Jun. 30,
2018

Fr. Jul. 1,
2018
To Dec. 31,
2018

Fr. Jan. 1,
2019
To Jun. 30,
2019

-

-

14,524
7,383
21,90826,39815,98242,381

-

-

2,561
1,827
138
595
9,226
374
8,790
61
11,788
10,120

4,344
4,344
4,306
3,115
252
938
14,510589
13,823
97
23,161
19,219Accounting Item

Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)

-

-

4,937
1,841
6,779

11,075
5,290
16,365

-

-

891
828
62
3,494
218
3,267
8
4,386
2,393

2,007
2,007
1,411
1,296
114
5,496
344
5,139
12
8,915
7,450

b. Details of Investment in Operating Rights for Public Facilities

S-19 CS Misato-machi Power Plant

Accounting Item

1st FP

2nd FP

3rd FP

4th FP

Fr. May 18,
2017
To Sep. 30,
2017

Fr. Oct. 1,
2017
To Jun. 30,
2018

Fr. Jul. 1,
2018
To Dec. 31,
2018

Fr. Jan. 1,
2019
To Jun. 30,
2019

Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)

-

-

-

10,733
6,273
17,006

-

-

-

877
877
5,056
117
4,896
41
5,934
11,072

Not applicable.
c. Details of Investment in Real Estate
Not applicable.
d. Details of Investment in Securities
Not applicable.
(4) Other Assets
Assets related to the power plants are described in “(3) Details of Assets / a. Details ofPower Generation Facilities / (iii) Operational Results of Each Power Generation Facilities (inJPY thousand)” and other assets as of June 30, 2019 are as follows.

Accounting Item

Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)

1st FP

2nd FP

3rd FP

4th FP

Fr. Oct. 1,
2017
To Jun. 30,
2018

Fr. Jul. 1,
2018
To Dec. 31,
2018

Fr. Jan. 1,
2019
To Jun. 30,
2019

-

-

-

17,98911,76829,758

-

-

-

3,730
1,376
2,354
8,847
261
8,464
121
12,57817,179TypeTransaction Outsideof Market

Interest Rate
Swap

22,012,204

Fair Value(Note 2)

20,811,569

-

Total
22,012,204
20,811,569(Note 1) The contracted amount is based on notional amount.
(Note 2) As the transaction is booked based on special treatment under the financial instrument accounting
standard, the fair value is omitted.

S-20 CS Marumori-machi Power Plant
Fr. May 18,
2017
To Sep. 30,
2017

Contracted AmountOver 1 year
(Note 1)
(Note 1)Category(5) Location of Assets by Country
There is no asset in the countries outside Japan as of June 30, 2019.

4.

Capital Expenditures for Assets under Management(1) Scheduled Capital Expenditures
Not applicable.
(2) Capital Expenditures during the Period
The following table shows capital expenditures for renewable energy power generation
facilities, etc. owned by CSIF during the fiscal period under review.
Name of infrastructure assets, etc.
(Location)

Purpose

Implementation period

CS Tsuyama-shi Power Plant(Tsuyama-shi, Okayama)

Slope disastercountermeasures
works

From November 5, 2018
To March 15, 2019

Other plants

Amount paid
(thousand yen)
42,403
12,135

Total

54,539-(3) Cash Reserved for Long-term Maintenance Plan

(Note 1) Average interest rate are based on actual number of days and weighted average. The number are rounded down.
(Note 2) For the debts with interest rate swap for hedging interest rate risk, the average interest rate incorporates the effectNot applicable.

of such interest rate swap.
(Note 3) The debt had been repaid on April 26, 2019 immediately after the refund of consumption tax.

5.

(Note 4) The use of the debt proceeds are the purchase of power plants.

Summary of Expenses and Debts(1) Summary of Expenses(3) Investment Corporation Bond
Not applicable.

3rd FP

4th FP

Asset Management Fee

From July. 1, 2018
To December 31, 2018
43,934

From January 1, 2019
To June 30, 2019
55,979Administrative Service Fee

17,066

18,945

Directors’ Compensation

2,400

2,400

Fiscal Period

Not applicable.

Other Operating Expenses

41,27456,752(5) Unit Acquisition Right

Total

104,676

134,076

Not applicable.

(2) Summary of Debts
Category
LenderLongterm(4) Short-term Investment Corporation Bond

Shinsei Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui
Banking
Corporation
MUFG Bank, Ltd.
Resona Bank, Ltd.
Orix Bank
Corporation
The Hiroshima
Bank, Ltd.
Nanto Bank, Ltd.
The Oita Bank,Ltd.
The Shonai Bank,Ltd.
The Mie Bank,Ltd.
The Tochigi Bank,
Ltd.
Sumitomo Mitsui
Banking
Corporation
Shinsei Bank, Ltd.
Sumitomo Mitsui
Banking
Corporation
MUFG Bank, Ltd.
Nanto Bank, Ltd.
The Ashikaga
Bank, Ltd.
The Hiroshima
Bank, Ltd.
Shinsei Bank, Ltd.
Sumitomo Mitsui
Banking
Corporation

Borrowing
Date

October 31, 2017

February 1, 2018

September 6,
2018

September 6,
2018

MUFG Bank, Ltd.
Shinsei Bank, Ltd.

March 29, 2019

Average
RepaymentInterest Rate (%) Repayment Date
Method(Note 1)

6.

Sales and Purchases during the Period

Beginning
BalanceEndingBalance

2,261
1,413

2,201
1,375

1,413

1,375

942
1,696

917
1,650

942

917

1,696

1,650

1,696

1,650

848

825

848

825

188

183

848

825

844

820

1,689

1,647

1,689

1,647

1,951
975

1,903
951

1,000

975

Purchaseor Sales

500

487

Purchase

318

-

318

-

212

-

-

680

24,29723,513

Use

Abstract(1) Summary for Sales and Purchases of Infrastructure Assets, Infrastructure-related Assets, Real
Estate and Asset-backed Securities
Asset No.

Name

Date

PurchaseAmount (in JPYmln) (Note)

Date

Sales
Amount (in Book Value Profit / Loss
JPY mln) (in JPY mln) (in JPY mln)

CS MisatoMarch 1,
machi Power
470
2019
Plant
CS MarumoriMarch 29,
S-20
machi Power
850
2019
Plant
Total
1,320
(Note) “Amount” is the purchase price based on the purchase contract and excludes costs such as property tax
and consumption tax.
S-19

0.84500(Note 2)October 31,
2027

Partialamortization

0.57636

February 1,
2021

Partialamortization(Note 4)

Unsecured andno guarantee

1.04200(Note 2)September 6,
2028

Partialamortization(Note 4)

Unsecured andno guarantee

0.061830.52091

Earlier date ofJune 30, 2020
or interest
payment date
Bulletimmediately
after refund of
consumption tax
PartialMarch 29, 2022
amortization(Note 4)

Unsecured andno guarantee

Unsecured andno guarantee(2) Summary for Sales and Purchases of Other Assets
Not applicable.
(3) Valuation of Specified Assets
a. Real Estate (appraisal value)

Purchase

Name

Transaction
Date

CS Misato-machi
Power Plant

March 1,
2019

CS Marumori-machi
Power Plant
Total

March 29,2019-

Purchase Price (inJPY mln) (Note 1)

Appraisal
Value (Note 2)

Valuation
Date

122

122

December31, 2018-

17

17

February 1,
2019-

139

139

(Note 1) “Purchase Price” denotes the contracted price for land ownership right or land surface right.
(Note 4)

Unsecured andno guarantee(Note 2) Daiwa Real Estate Appraisal Co., Ltd. Is the appraiser.

-

b. Infrastructure Asset
Purchaseor SalesName

Purchase
Purchaseequity, note and statement of cash distribution.
Transaction
Date

CS Misato-machi
Power Plant

March 1,
2019

CS Marumori-machi
Power Plant
Total

March 29,2019-

Purchase Price (inJPY mln) (Note 1)

Asset Value(Note 2)

Valuation
Date

470

429 – 534

December31, 2018-

850

771 – 945

February
1, 2019-

1,320

1,201 – 1,479(2) Change in Calculation Method of Depreciation
Not applicable.
(3) Change in Valuation Method of Infrastructure Assets and Real Estate
Not applicable.

-(Note 1) “Purchase Price” denotes the contracted price on the purchase agreement.

(4) Company Setting Investment Trust Beneficial Securities
Not applicable.

(Note 2) “Asset Value” includes the appraisal value of the real estate mentioned in “a. Real Estate (appraisal value)”
above.
(Note 3) The investigation of the asset value is conducted by Grant Thornton Taiyo LLC based on the guideline No.23
published by JICPA.

c. Other
There has been no transaction other than stated in “a. Real Estate (appraisal value)” and“b. Infrastructure Asset” above.

8.

Other
(1) Notification
a. Unitholders’ Meeting
The 2nd unitholders’ meeting was held on March 28, 2019 and the matters below had
been approved.

(4) Transactions with Interested Parties
a. Sales and Purchases
Category
Total

Date

Purchase / Sale Amount (Note 2)
Purchase Amount
Sales Amount(in JPY thousand)(in JPY thousand)
1,320,000-

Breakdown of Transactions with
Interested Parties (Note 1)
Univergy 01 G.K.
CLEAN ENERGIES SOLUTIONS
K.K.
Total

Matters

Summary

Partial change of the fund’s
articlesDeletion of unnecessary articles and addition ofarticles regarding the compensation to the asset
manager.

Election of the executive director

Tetsuya Nakamura was elected.

Election of the supervisory
director

Takashi Handa and Eriko Ishii were elected.

Election of the substituteexecutive director

Hiromoto Ishizuka was elected.

March 28, 2019
470,000
850,000(35.6%)(64.4%)

-

(-%)
(-%)

1,320,000(100.0%)-(-%)(Note 1) The definition of “Interested Parties” is depending on the relevant law.
(Note 2) The amounts are based on the amount stated in the purchase and sales agreement of the assets.
(Note 3) The parties above were the interested parties at the time of purchase of the assets. But, after the purchase, they
were no longer the interested parties.

b. Lease
Not applicable.

b. Board of Executives Meeting
None of new contract and change for major contract of the fund was approved by theboard of executives meeting for the FP.
(2) Treatment of Amount and Ratio with Fractional Point
Unless otherwise described, the amounts are rounded down and the ratio are rounded up orc. Commission Paid
Not applicable.
(5) Asset Manager’s Transaction Related to Asset Manager’s Other Business
Asset Manager doesn’t conduct any of the type1 and type2 financial instrument exchange
business, real estate transaction business and specified joint real estate ventures. There was
no applicable transaction during the period.

7.

Summary of Accounts(1) Summary of Assets, Liabilities, Capital and Income/Loss
Please see the balance sheet, statement of income, statement of changes in unitholders’down.

Balance Sheet（Unit：thousand yen）
3rd Period（December 31, 2018）

4th Period(June, 2019)

AssetsCurrent Assets
Cash and bank deposit
Operating accounts receivable
Prepaid expenses
Consumption taxes receivable
Other current assets

3,222,807
208,913
107,714793,148685

2,466,624
426,756
71,805215

Total current assets

4,333,268

2,965,401

797,621(28,399)

835,726(45,417)

Fixed Assets
Property and equipment
Structures
Accumulated depreciation
Structures, net

769,221790,308

37,427,871(1,405,797)

38,610,034(2,191,437)

36,022,074

36,418,597

505,287(22,181)

521,176(32,570)

483,106

488,605Land
Construction in progress

4,309,021
6,244

4,466,771-

Total property and equipment

41,589,667

42,164,283

494,4872,763

512,4112,746

Total intangible assets

497,250

515,158

Investments and other assets
Long-term prepaid expenses
Deferred tax assets
Long term deposits
Guarantee deposits

324,500
12
7,800
21,021

307,42412
7,800
21,021

Machinery and equipment
Accumulated depreciation
Machinery and equipment ,net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net

Intangible assets
Leasehold rights
SoftwareTotal investment and other assets
Total fixed assets
Total Assets

353,333

336,258

42,440,252

43,015,700

46,773,521

45,981,101

Liabilities
Current liabilities
Accounts payable – operating
Current portion of long-term loans payable
Accounts payable – otherAccrued expenses
Income taxes payable
Consumption tax payable
Deposits received

25,2901,239,176
56,31773,449857
5,246

26,344
1,286,149
83,003112,673868
49,904
1,750

Total current liabilities

1,400,337

1,560,694

Non-current liabilities
Long-term loan payable

23,057,919

22,227,007

23,057,919

22,227,007

24,458,257

23,787,702

22,050,175(147,209)

22,050,175(567,281)

21,902,965

21,482,893

412,298

710,506

Total non-current liabilities
Total liabilities
Net assets
Unitholders' equity
Unit holders’ capital
Deduction from unitholders’ capital
Unitholders’ capital (net value)
Surplus
Unappropriated retained earnings(Accumulated deficit)
Total surplus

412,298

710,506

Total unitholders' equity

22,315,263

22,193,399*1 22,315,263
46,773,521*1 22,193,399
45,981,101

Total net assets
Total liabilities and net assets

Statements of Changes in Unitholders’ Equity
3rd Fiscal Period (From July 1, 2018 to December 31, 2018)

Statement of Income（Unit: thousand yen）

(Unit: thousand yen)
3rd period(from July 1, 2018
to December 31, 2018)

Unitholders’ equity

4th period(from January 1, 2019
to June 30, 2019)

Unitholders’ capital
Unitholders’capitalOperating revenues
Rental revenues of renewable energy power
generation facilities, etc.

*1 1,785,374*1 2,185,392

1,785,374

2,185,392*1 1,035,958*1 1,234,114

Asset management fee

43,93455,979Administrative service fees

17,066

18,945

Director’s compensation

2,400

2,400

Total operating revenues
Operating expenses
Rental expenses of renewable energy power
generation facilities, etc.

Taxes and duties

1,346

399

Other operating expenses

39,92856,352

Total operating expenses

1,140,634

1,368,191

644,739

Operating income or loss

Insurance income

Total
unitholders’
Total surplus
equityCapitalsurplus orloss

17,315,550-

17,315,550

281,047

281,047

17,596,597

17,596,597

Changes of items
during the period
Issuance of units

4,734,625-

4,734,625--

4,734,625

4,734,625

Distribution inexcess of earnings-(147,209)(147,209)--(147,209)(147,209)

Dividend of surplus

-

-

-

(280,936)(280,936)(280,936)(280,936)

Net Income

-

-

-

412,187

412,187

412,187

412,187

817,201

4,734,625(147,209)

4,587,415

131,250

131,250

4,718,666

4,718,666

17

15

Balance as of June 30,
2018*1 22,050,175(147,209)

21,902,965

412,298

412,298

22,315,263

22,315,263

18,81527,146

Interest on refund

1,942

1,355

Total non-operating income

20,77528,517

4th Fiscal Period (From January 1, 2019 to June 30, 2019)

Interest expenses

97,912

106,345

Unitholders’ equity

Borrowing-related expenses

103,40828,083

Investment unit issuance expenses

51,132-

Total non-operating expenses

252,452

134,428

Ordinary income

413,062

711,290

Income before income taxes（Unit: thousand yen）

Non-operating expenses

413,062

711,290

Income taxes - current

860

870

Income tax - deferred

140Total income taxes
Net income
Retained earnings (deficit) brought forward
Unappropriated retained earnings (Accumulated
deficit)

Total net
assetsTotal changes of items
during the period

Non-operating incomesInterest income

Balance as of January
1, 2019

Surplus

Deduction
fromUnitholders’unitholders’ capital(net)capitalUnitholders’ capital
Deduction
fromUnitholders’unitholders’ capital(net)capitalUnitholders’capitalBalance as of January
1, 2019

SurplusTotal
unitholders’
Total surplus
equityCapitalsurplus or
loss

Total net
assets

22,050,175(147,209)

21,902,965

412,298

412,298

22,315,263

22,315,263

Changes of items
during the period

874

870

412,187

710,419

110

86

Distribution inexcess of earnings-(420,072)(420,072)--(420,072)(420,072)

412,298

710,506

Dividend of surplus

-

-

-

(412,211)(412,211)(412,211)(412,211)Net Income

-

-

-

710,419

710,419

710,419

710,419

Total changes of items
during the period-(420,072)(420,072)

298,208

298,208(121,864)(121,864)

Balance as of June 30,
2018*1 22,050,175(567,281)

21,482,893

710,506

710,506

22,193,399

22,193,399

NotesSummary of Significant Accounting Policies
1.Method of depreciation andamortization of non-current
assets2.Standards for revenue andexpense recognition

3.Method of hedge accounting

4.Other significant mattersserving as the basis for
preparation of financial
statements(1) Property and equipment
The straight-line method is adopted. In addition, the useful lives of major
property and equipment are as shown below:
Structures .......................................................... 22 - 25 years
Machinery and equipment ................................. 22 - 25 years
Tools, furniture and fixtures ............................... 22 - 25 years(2) Intangible assets
The straight-line method is adopted. In addition, the useful life is as shown
below:
Software ............................................................ 5 years(3) Long-term prepaid expenses
The straight-line method is adopted.
Accounting for fixed assets tax
With respect to fixed assets tax, city planning tax and depreciable assets
tax, among other taxes, on the infrastructure assets held, of the tax amountassessed and determined, the amount corresponding to the calculation
period is accounted as rental expenses. In addition, reimbursement suchas fixed assets tax, which is paid to the seller and other persons on theacquisition of infrastructure assets and other assets (“the amountequivalent to the fixed assets taxes and other taxes”) is not recognized asrental expenses but included in the acquisition cost of the concerned
infrastructure assets and other assets. In the fiscal period under review, theamount equivalent to the fixed assets tax and other taxes included in theacquisition cost of infrastructure assets and other assets is 27,047
thousand yen.
(1) Method of hedge accounting
Special treatment is adopted for the interest rate swap that meets therequirements for special treatment.
(2) Hedging instruments and hedged items:･Hedging instruments……Interest rate swap transaction･Hedged items….Interest rate on loans(3) Policy for hedging
CSIF conducts derivative transactions to hedge risks as set forth in the
CSIF’s Articles of Incorporation according to the rules for risk management.
(4) Method of evaluation of effectiveness of hedging
The interest rate swap meets the requirements for special treatment, andthus the evaluation of effectiveness is omitted.
Accounting for Consumption tax
Consumption tax and local consumption tax are excluded from thecorresponding transaction amount.

Notes to Balance Sheet*1 Minimum net assets stipulated in Article 67, Paragraph 4 of the Act on Investment Trusts andInvestment Corporations(Unit: thousand yen)
As of December 31, 2018

As of June 30, 201950,00050,000Notes to Statement of Income*1 Breakdown of profits and losses from the rental business of renewable energy power generation
facilities, etc.
(Unit: thousand yen)
From July 1, 2017
to December 31, 2018

From January 1, 2019
to June 30, 2019

A. Operating revenue from the rental business of renewable energy power generation facilities, etc.
Rental revenue of renewable energy power generation
facilities, etc.
(Basic rent)(Variable rent linked to actual output)(Incidental income)
Total operating revenue from the rental business ofrenewable energy power generation facilities, etc.

1,322,669

1,478,843

462,578

706,346

127

202

1,785,374

2,185,392

B. Operating expenses from the rental business of renewable energy power generation facilities, etc.
Rental expenses of renewable energy power generation
facilities, etc.
(Management entrustment expenses)(Repair and maintenance costs)(Taxes and duties )(Utilities expenses)

127,128

144,616

2,055

8,560

154,262

217,138--(Insurance expenses)

12,90017,023(Depreciation expenses)

713,168

813,047(Land rent)

26,44433,727--

1,035,958

1,234,114

749,416

951,278(Other rental expenses)
Total operating expenses from the rental business ofrenewable energy power generation facilities, etc.
C. Profits and losses from the rental business ofrenewable energy power generation facilities, etc. (A-B)

Notes to Statements of Changes in Unitholders’ Equity*1 Total number of authorized investment units and the total number of investment units issued
and outstanding
From July 1, 2017
To December 31, 2018

From January 1, 2019
To June 30, 201910,000,000 unit

10,000,000 unit

231,190 unit

231,190 unit

Total number of authorized
investment units
Total number of investment units
issued and outstanding

Notes on Tax Effect Accounting
1.Breakdown of deferred tax assets and deferred tax liabilities by major cause(Unit: thousand yen)
Fiscal period ended
December 31, 2018

Fiscal period ended
June 30, 2019

Accrued business tax not deductivle fromtaxable income

1212Total deferred tax assets

12

12

Net amount of deferred tax assets

1212(2) Details of the financial instruments and their risks and the risk management system
Long-term loans payables are one of the means to procure the funds for the acquisition ofmanaged assets and are exposed to interest rate fluctuation risk and liquidity risk, among otherrisks. However, this risk is deducted through the appropriate balancing of the loan period andthe interest rate type, and diversification of lenders, and the appropriate management ofvarious types of indexes, especially the general application of the upper limit of the ratio ofinterest-bearing, which is 60%.
(3) Supplementary explanation on fair value of financial instruments
The fair values of financial instruments are values based on market prices, or if there are nomarket prices, values are reasonably calculated. Since certain assumptions are used for the
calculation of fair values, they may change if different assumptions are used.
2. Matters relating to fair values of financial instruments
The table below shows the book value and fair values of financial instruments as ofDecember 31, 2018 and the difference between them. Financial instruments whose fairvalues are extremely difficult to estimate are not included in the table.
(Unit: thousand yen)Book value(1) Cash and deposits(2) Operating accounts receivable(3) Long-term deposits

2.Breakdown of each major item that causes a significant difference between the effective
statutory tax rate and the rate of the burden of corporate tax and other taxes after the applicationof tax effect accounting(Unit: thousand yen)
Fiscal period ended
December 31, 2018
Effective statutory tax rate

Fiscal period ended
June 30, 201931.51%

31.51%(Adjustment)
Dividends paid deductible for tax purpose(31.45)%(31.47)%--

Others

0.15%

0.08%

Rate of burden of corporate tax and other taxes
after the application of tax effect accounting

0.21%

0.12%

Loss carried forward and deducted for the period

Notes on Financial Instruments
1.Situation of financial instruments(1) Policy for financial instruments
CSIF procures funds for acquiring new assets or repaying loans through loans from financial
institutions or issuing investment units. The basic policy is to build stable and sound financial
operations to maintain and increase earnings in the medium to long term and grow the sizeand value of assets.

Total assets

Fair value

Difference

3,222,807

3,222,807-

208,913208,913

-

7,800

7,800

-

3,439,520

3,439,520-(4) Current portion of long-termloans payable

1,239,176

1,241,069

1,892(5) Long-term loans payable

23,057,919

23,391,454

333,534

Total liabilities

24,297,096

24,632,523

335,427(6) Derivative transaction

-

-

-

(Note 1) Methods used for estimating the fair values of financial instruments and matters related to derivativetransactions
Assets(1) Cash and deposits (2) Operating accounts receivable
These financial instruments are settled in the short term, and their fair values are deemed to approximate theirbook value. Therefore, the book values are used as the values.
(3) Long-term deposits
This financial instrument refers to time deposits. With no significant difference between the expected interest rate
for a new deposit and a contractual interest rate, their fair values are very close to their book values. Therefore, thebook values are used.
Liabilities(4) Current portion of long-term loans payable(5) Long-term loans payable
With respect to long-term loans payable at variable interest rates, the condition that the interest rates are renewed
every certain period is applied to loans, and thus the market value is considered to be close to the book value.
Accordingly, the book value is used. In addition, for the long-term loans payable at variable interest rates subject tothe special treatment of interest rate swap (refer to the “Notes on derivative transactions” below), the fair value ismeasured by discounting the total sum of the principal and interest treated together with the said interest rate swap
as one at the interest rate that is applied when the similar loan is obtained and that is reasonably estimated.
(6) Derivative transaction
Please refer to the “Notes on derivative transactions” below.

The table below shows the book value and fair values of financial instruments as of June 30, 2019, and thedifference between them. Financial instruments whose fair values are extremely difficult to estimate are notincluded in the table.

Scheduled redemption amounts of monetary receivables after the closing date (June 30, 2019)(Unit: thousand yen)Book value(1) Cash and deposits(2) Operating accounts receivable(3) Long term deposits

Fair value

Difference

2,466,624

2,466,624-(1) Cash and deposits

426,756

426,756-(2) Operating accounts receivable-(3) Long-term deposits

7,800

7,800

Total assets

2,901,181

2,901,181-(4) Current portion of long-term loans
payable1,286,149

1,287,698

1,548(5) Long-term loans payable

22,227,007

22,491,852

264,844

Total liabilities

23,513,157

23,779,551

266,393(6) Derivative transaction

-

-

-

Total

(2) Operating accounts receivable(3) Long-term deposits
Total

-

-

-

-

-

426,756

-

-

-

-

-

-

7,800

-

-

-

-

2,893,381

7,800

-

-

-

-

Within one
year(Note 2) Scheduled redemption amounts of monetary receivables after the closing date (December 31, 2018)(Unit: thousand yen)

(1) Cash and deposits

2,466,624(Note 3) Scheduled redemption amount of loans payables after the closing date (December 31, 2018)(Unit: thousand yen)

(Note 1) Methods used for estimating the fair values of financial instruments and matters related to derivativetransactions
Assets(1) Cash and deposits (2) Operating accounts receivable
These financial instruments are settled in the short term, and their fair values are deemed to approximate theirbook value. Therefore, the book values are used as the values.
(3) Long-term deposits
These financial instruments are time deposits, and their fair values are deemed to be close to their book value as
there is no significant variance between the deposit and the contracted interest rates that are assumed upon a new
cash deposit. Therefore, the book values are used as the values.
Liabilities(4) Current portion of long-term loans payable(5) Long-term loans payable
With respect to long-term loans payable at variable interest rates, the condition that the interest rates are renewed
every certain period is applied to loans, and thus the market value is considered to be close to the book value.
Accordingly, the book value is used. In addition, for the long-term loans payable at variable interest rates subject tothe special treatment of interest rate swap (refer to the “Notes on derivative transactions” below), the fair value ismeasured by discounting the total sum of the principal and interest treated together with the said interest rate swap
as one at the interest rate that is applied when the similar loan is obtained and that is reasonably estimated.
(6) Derivative transaction
Please refer to the “Notes on derivative transactions” below.

Within one
year

Longer than Longer than Longer than Longer than
one year,
two years, three years, four years, Longer than
within two within three within four
within five
five years
years
years
years
years

Within one
year(Unit: thousand yen)

Longer than Longer than Longer than Longer than
one year,
two years, three years, four years, Longer than
within two within three within four
within five
five years
years
years
years
years

3,222,807

-

-

-

-

-

208,913

-

-

-

-

-

-

7,800

-

-

-

-

3,431,720

7,800

-

-

-

-

(4) Current portion of long-termloans payable

1,239,176

-

-

-

-

-

-

2,122,610

1,995,867

1,275,305

1,292,889

16,371,247

1,239,176

2,122,610

1,995,867

1,275,305

1,292,889

16,371,247(5) Long-term loans payable

Total

Longer than Longer than Longer than Longer than
one year,
two years, three years, four years, Longer than
within two within three within four
within five
five years
years
years
years
years

Scheduled redemption amount of loans payables after the closing date (June 30, 2018)(Unit: thousand yen)
Within one
year(4) Current portion of long-termloans payable

1,286,149

-

-

-

-

-

-

2,053,702

1,862,492

1,286,533

1,285,273

15,739,005

1,286,149

2,053,702

1,862,492

1,286,533

1,285,273

15,739,005(5) Long-term loans payable
Total

Longer than Longer than Longer than Longer than
one year,
two years, three years, four years, Longer than
within two
within three within four within five
five years
years
years
years
years

Notes on Derivative Transactions
1. Those to which hedge accounting is not applied
Prior fiscal period (as of December 31, 2018) and current fiscal period (as of June 30, 2019)
Not applicable.
2. Those to which hedge accounting is applied
Prior fiscal period (as of December 31, 2018)(Unit: thousand yen)
Method ofhedge
accounting

Type of derivativetransactions and othermatters

Specialtreatment ofinterest rate
swap

Interest rate swap
transaction
Fixed payment/variable
receipt

Major items
hedgedContract amount and otheramounts
Longer than
one year

Fair
value

Method ofcalculation ofsaid market
valueLong-term
loans
payable22,603,027(Note)-

21,411,430

(Note) Those that are subject to special treatment of interest rate swap are treated together with the current portion of
long-term loans payable and the long-term loans payable to be hedged as one, and thus their fair value is presented
together with the fair value of (Note 1) (3) Current portion of long-term loans payable and (4) Long-term loans payable
in “Notes on financial instruments 2.Matters relating to fair values of financial instruments, among other matters” .
Current fiscal period (as of June 30, 2019)fiscal period ended December 31, 2018 (the 3rd period) and the fiscal period ended June 30, 2019(the 4th period) are as stated in the “Notes to statement of income” above.
Notes on Restriction for Asset Management
Not applicable.

(Unit: thousand yen)
Method ofhedge
accounting

Type of derivativetransactions andother matters

Specialtreatment ofinterest rate
swap

Interest rate swap
transaction
Fixed
payment/variable
receipt

Major
items
hedgedContract amount and otheramounts
Longer than
one year

Fair value

Method ofcalculation ofsaid market
value

AttributeLong-term
loans
payable22,012,204

20,811,569（Note）-(Note) Those that are subject to special treatment of interest rate swap are treated together with the current portion of
long-term loans payable and the long-term loans payable to be hedged as one, and thus their fair value is presented
together with the fair value of (Note 1) (4) Current portion of long-term loans payable and (5) Long-term loans payable
in “Notes on financial instruments 2.Matters relating to fair values of financial instruments, among other matters”

Notes on Investment and Rental Property
CSIF has renewable energy power generation facilities, etc. The book value, change during
the period and fair value at the end of the period are as shown below.
(Unit: thousand yen)
Fiscal period ended
December 31, 2018

Fiscal period ended
June 30, 2019

Book value (Note 2)
Beginning balance

31,110,561

42,077,910

Change during the period (Note 3)

10,967,348

598,784

Ending balance

42,077,910

42,676,695

47,099,500

50,026,000

Fair value at the end of the period

Notes on Related Party Transaction
For prior period (from July 1, 2018 to December 31, 2018)(Note 4)Name

Address

50F Shinjuku
Interested
Mitsui Bldg.,
Party of Univergy 23 Nishi-shinjuku
Asset
G.K.
2-1-1,
Manager
Shinjuku-ku,
Tokyo JAPAN50F Shinjuku
Interested
Mitsui Bldg.,
CLEAN
Party of
Nishi-shinjuku
ENERGIES
Asset
2-1-1,XXI G.K.
Manager
Shinjuku-ku,
Tokyo JAPAN50F Shinjuku
Interested
Mitsui Bldg.,
Party of Univergy 10 Nishi-shinjuku
Asset
G.K.
2-1-1,
Manager
Shinjuku-ku,
Tokyo JAPAN33F
ShinjukuCenter
Interested
Canadian
Bldg.,
Party of
Solar O&M Nishi-shinjuku
AssetJapan K.K. 1-25-1,
Manager
Shinjuku-ku,
Tokyo JAPAN

generation facilities and real estate are stated together as one.
(Note 2) The book value is the amount at acquisition cost less the accumulated depreciation.
(Note 3) The change during the period ended December 31, 2018 primarily consisted of the increase due to acquisition of
three photovoltaic power generation facilities (11,651,820 thousand yen), and the decrease due to depreciation
expenses (713,168 thousand yen). And the change during the period ended June 30, 2019 primarily consisted of
the increase due to acquisition of two photovoltaic power generation facilities (1,357,292 thousand yen), and thedecrease due to depreciation expenses (813,047 thousand yen).
(Note 4) The fair value is the total sum of the intermediate values according to Article 41, paragraph 1 of the CSIF's
Articles of Incorporation on the basis of the appraised value in the range stated in the valuation report with thedate of the value opinion on December 31, 2018 and June 30, 2019, which was obtained fromPricewaterhouseCoopers Sustainability LLC or Ernst & Young Transaction Advisory Services Co., Ltd..

Business

Transaction

Transaction
Amount(in JPY
thousand)(Note 1)
(Note 2)

Account

EndingBalance(in JPY
thousand)(Note 1)-

Purchase of Acquisition of
Not
Solar Power Solar Powerapplicable
Plant
Plant

757,000---

Purchase of Acquisition of
Not
Solar Power Solar Power 10,447,000
applicable
Plant
Plant

-

-

-

Purchase of Acquisition of
Not
Solar Power Solar Powerapplicable
Plant
Plant

325,000---

Outsourcing
Notof Operation
applicableandMaintenance

Payment of
O&M Fee

127,128

Accounts
Payable25,290Transaction

Transaction
Amount(in JPY
thousand)(Note 1)
(Note 2)

Account

EndingBalance(in JPY
thousand)(Note 1)-

Purchase of Acquisition of
Not
Solar Power Solar Powerapplicable
Plant
Plant

470,000---

Purchase of Acquisition of
Not
Solar Power Solar Powerapplicable
Plant
Plant

850,000---

Outsourcing
Notof Operation
applicableandMaintenance

144,616

Accounts
Payable26,344

Relationship
Number ofUnits Hold Concurrent(Held) Position of Business
Relationship
Executive

Development,
Acquisition,
Construction
0 and Operationof Renewable
Energy Power
Plant
Development,
Acquisition,
Construction
100 and Operationof Renewable
Energy Power
Plant
Development,
Acquisition,
Construction
0 and Operationof Renewable
Energy Power
Plant
Operation
0 andMaintenance(Note 1) The amounts exclude consumption taxes.
(Note 2) The condition of transactions are referring to market prices etc.

For current period (from January 1, 2019 to June 30, 2019)
Attribute

Name

Address(Note 1) The real estate that CSIF holds is real estate to be provided for the use of renewable energy power generation
facilities, and thus with respect to the book value and the fair value, the amount of the renewable energy power

Capital(in JPY
thousand)Interested
Party of Univergy 01
Asset G.K.
Manager

50F Shinjuku
Mitsui Bldg.,
Nishi-shinjuku 21-1, Shinjuku-ku,
Tokyo JAPAN

Hippo Aza
Interested CLEAN
Higashiyama
Party of ENERGIES
8-1, MarumoriAsset SOLUTIONS
machi, Igu-gun,Manager G.K.
Miyagi, JAPAN
33F
Interested
ShinjukuCenter
Canadian
Party of
Bldg.,
Solar O&M
Asset
Nishi-shinjuku 1Japan K.K.
Manager
25-1,
Tokyo JAPAN

Capital(in JPY
thousand)Business

Relationship
Number ofUnits Hold Concurrent(Held) Position of Business
Relationship
Executive

Development,
Acquisition,
Construction
0 and Operationof Renewable
Energy Power
Plant
Development,
Acquisition,
Construction
100 and Operationof Renewable
Energy Power
Plant

0

Operation and
Maintenance(Note 1) The amounts exclude consumption taxes.

In addition, profits and losses from the renewable energy power generation facilities, etc. for the(Note 2) The condition of transactions are referring to market prices etc.

Payment of
O&M FeeNotes on Per Unit Information
Prior fiscal period
From July 1,2018
to December 31, 2018
Net assets per unit
Net income (Net loss) per unitof cash distributions shall be theamount of profit in excess of anamount equivalent to 90% of
distributable profits, as stipulated in
Article 67-15 of the Act on Special
Measures Concerning Taxation.
Based on this policy, CSIF decided
to make distributions of¥412,211,770 which is the entire
amount equivalent to theunappropriated retained earnings forthe fiscal period under review of¥412,298,211 excluding fractions of
the distribution per unit that are lessthan ¥1.
CSIF distributes cash in excess ofretained earnings every fiscal period
based on the cash distribution policy
prescribed in Article 47, Paragraph 2of CSIF’s Articles of Incorporation.
Based on this policy, CSIF decided
to make cash distributions in excessof earnings (return of capital
categorized as a distribution of the
reduction in capital for Japanese tax
purposes) in the amount of¥420,072,230 which is equivalent to58.9% of the amount of depreciation
expenses recorded for the fiscal
period under review of¥713,524,700.
Accordingly, the distribution perunit is ¥3,600.

Current fiscal period
From July 1, 2018
December 31, 2018

96,523 yen
1,932 yen

95,996 yen
3,072 yen

(Note 1) Net income (Net loss) per unit is calculated by dividing net income (net loss) by the average number ofinvestment units during the period. In the previous fiscal period, a loss was posted and there were no dilutive
investment units, and thus diluted loss per unit is not stated. With respect to diluted profit per unit for the period
under review, there are no dilutive investment units, and thus the statement is omitted.
(Note 2) The basis of calculation of net income (net loss) per unit is as follows.
Prior fiscal period
From July 1,2018
to December 31, 2018
Net income (Net loss) (Thousand yen)

Current fiscal period
From July 1, 2018
December 31, 2018

412,187

710,419--

Net income (Net loss) attributable to Common unit holders(Thousand yen)

412,187

710,419

Average number of investment units during the period (Units)

213,246

231,190

Amount not attributable to common unit holders (Thousand yen)

Notes on Facts Arising after the Settlement of Accounts
Not applicable.
Statement of Cash Distribution
Fiscal Period under Review(From July 1, 2018
to December 31, 2018)

I Unappropriated retained earnings(accumulated deficit)
II Distributions in excess of retained earnings
Deduction from unitholders’ capital
III Cash distributions(Cash distributions per unit)
Profit distributions(Profit distributions per unit)
Distributions in excess of retained
earnings(Distributions in excess of retained
earnings)
IV. Retained earnings (deficit) carried forward

Calculation method for cash distributions

Fiscal Period under Review(From January 1, 2019
to June 30, 2019)
Unit: Yen

412,298,211

710,506,353

420,072,230

133,396,630

832,284,000(3,600)412,211,770(1,783)420,072,230

843,843,500(3,650)710,446,870(3,073)
133,396,630(1,817)86,441(577)
59,483

In accordance with Articles 47,
Paragraph 1 of Canadian Solar
Infrastructure Fund, Inc. (“CSIF’) s
Articles of Incorporation, the amountIn accordance with Articles 47,
Paragraph 1 of Canadian Solar
Infrastructure Fund, Inc. (“CSIF’) s
Articles of Incorporation, the amount(Note)of cash distributions shall be theamount of profit in excess of anamount equivalent to 90% of
distributable profits, as stipulated in
Article 67-15 of the Act on Special
Measures Concerning Taxation.
Based on this policy, CSIF decided
to make distributions of¥710,506,353 which is the entire
amount equivalent to theunappropriated retained earnings forthe fiscal period under review of¥710,446,870 excluding fractions of
the distribution per unit that are lessthan ¥1.
CSIF distributes cash in excess ofretained earnings every fiscal period
based on the cash distribution policy
prescribed in Article 47, Paragraph 2of CSIF’s Articles of Incorporation.
Based on this policy, CSIF decided
to make cash distributions in excessof earnings (return of capital
categorized as a distribution of the
reduction in capital for Japanese tax
purposes) in the amount of¥133,396,630 which is equivalent to16.4% of the amount of depreciation
expenses recorded for the fiscal
period under review of¥813,434,738.
Accordingly, the distribution perunit is ¥3,650.

Distributions in excess of retained earnings per unit will generally be based on the cash distribution policy
prescribed in CSIF’s Articles of Incorporation and the Asset Manager’s asset management guideline.
CSIF intends to make cash distributions of NCF within the FCF generated from the renewable energy power
generation facilities. The amount available for distribution shall be calculated by multiplying NCF by the payout
ratio.
Further, CSIF intends to make distributions in excess of retained earnings for each fiscal period in order to realize
such policy.
CSIF’s forecasts (including revised forecasts) for each fiscal period are based on the assumption of the Forecast
Power Generation (P50) provided in the independent technical report which is used as a basis for calculating rents
for renewable energy power generation facilities and if actual NCF calculated based on actual power generation
during the applicable fiscal period exceeds forecast NCF, CSIF’s policy is to set “forecast NCF multiplied by thepayout ratio” as the upper limit of the amount of cash distributions for the applicable fiscal period.
.
On the other hand, if actual NCF is less than forecast NCF, CSIF’s policy is to set “actual NCF multiplied by thepayout ratio” as the amount of cash distributions for the applicable fiscal period.
Based on this policy, CSIF decided to make distributions for the previous fiscal period of ¥832,284,000 which isequivalent to 79.1% of forecast NCF amount for the fiscal period under review of ¥1,052,089,734. Of this,¥420,072,230 which is the amount less of distributions of profit of ¥412,211,770 is distributions in excess ofretained earnings.
Based on this policy, CSIF decided to make distributions for the current fiscal period of ¥843,843,500 which isequivalent to 48.0% of forecast NCF amount for the fiscal period under review of ¥1,758,007,291. Of this,¥133,396,630 which is the amount less of distributions of profit of ¥710,446,870 is distributions in excess ofretained earnings.

Statement of Cash Flow

Summary of Significant Accounting Policies
Scope of funds instatement of cash
flows

（unit: thousand yen）
3rd period(From July 1, 2018
to December 31, 2018)

4th period(From January 1, 2019
to June 30, 2019)

Cash flows from operating activities
Income (Loss) before income taxes

413,062

711,290

Depreciation cost

713,524

813,434

Investment unit issuance expenses

51,132

-

(17)

(15)

Interest income

Funds (cash and cash equivalents) in statement of cash flows consist of cash on
hand, demand deposits and short-term investments with a maturity of three months orless at the date of acquisition that can readily be converted into cash and that are subject
to insignificant risks of changes in value.

Notes to Statement of Cash Flows*1 Relationship between the ending balance of cash and cash equivalents and the amounts on thebalance sheet(Unit: thousand yen)
From July 1, 2017 to
December 31, 2018

From January 1, 2019 toJune 30, 2019

Interest expenses

97,912

106,345

Decrease (Increase) in operating accounts receivable

109,517(217,843)

Cash and deposits

3,222,807

2,466,624

Decrease (Increase) in consumption taxes receivable
Decrease (Increase) in consumption taxes payable

1,316,672-

793,148
49,904

Cash and cash equivalents

3,222,807

2,466,624

Decrease (Increase) in prepaid expenses(92,669)

35,909Decrease (Increase) in long-term prepaid expenses(94,581)

17,075

Increase (Decrease) in operating accounts payable

7,073

1,053

Increase (Decrease) in accounts payable - other

13,846

26,686

Increase (Decrease) in accrued expenses(6,021)

39,839Other, net

3,228(3,024)Sub-total

2,532,681

2,373,805

Interest received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities

17

15(96,340)(106,961)(1,468)(859)

2,434,890

2,265,998

Cash flows from investing activities
Payment for long term deposit
Purchases of property and equipment
Purchases of intangible fixed assets
Net cash provided by (used in) investing activities(7,800)-(11,679,932)(1,387,663)(4,885)(18,294)(11,692,617)(1,405,958)

Cash flows from financing activities
Proceeds from long-term loans payable

8,850,000

700,000

Repayment of long-term loans payable(2,656,191)(1,483,938)

Proceeds from issuance of investment units

4,734,625-

Payments for investment unit issuance expenses(51,132)-

Dividends paid

(280,936)(412,211)

Surplus earning distribution paid

(147,209)(420,072)

Net cash provided by (used in) financing activities

10,449,154(1,616,222)

Net increase (decrease) in cash and cash equivalents

1,191,427(756,182)

Cash and cash equivalents at the beginning of the fiscal
period

2,031,379

3,222,807

Cash and cash equivalents at the end of the fiscal period*1 3,222,807*1 2,466,624